Remy Cointreau downgrades FY sales outlook

Remy Cointreau downgraded its full-year sales outlook on Friday as it posted a drop in first-half sales amid continued destocking in the Americas.

The French drinks maker said sales in the first half fell 15.9% on an organic basis, or 16.2% on a reported basis, to €533.7m. Sales in the second quarter were down 16.1% on an organic basis, versus consensus expectations for a 15.4% drop.

In the Americas, sales declined 22.8% on an organic basis in the first half due to continued destocking. The APAC region experienced an 8% decline in sales, reflecting a high basis of comparison, tougher market conditions in China and slack consumption in Southeast Asia.

Sales in EMEA fell 18.8% amid "persistently variable consumer trends".

Remy Cointreau said it now expects another year of double-digit decline in sales in organic terms, versus previous expectations for "a gradual recovery over the course of the year".

At 1010 BST, the shares were down 0.8% at €59.20.