Rémy Cointreau predicts ‘strong recovery’ in H2

French drinks group Rémy Cointreau has upgraded its forecast for the first quarter of 2020/21 to a sales decline of around 45%, but expects a “strong recovery” in the second half of its financial year.

Rémy Cointreau hopes to achieve carbon neutrality by 2050

In April this year, Rémy Cointreau released its financial results for the 12 months ending 31 March 2020. Sales for the 2019/20 full-year fell 9% on a reported basis to €1.02 billion (US$1.15bn), while sales for the three months to 31 March 2020 declined by 24% due to the pandemic.

In addition, the group predicated that organic sales would decline by around 50% to 55% during the first quarter of its financial year.

Yesterday (4 June), Rémy Cointreau released a new update with an outlook for 2020/21 and the medium term. The firm said it “remains confident in its ability to emerge stronger from the [Covid-19] crisis”.

The group said that favourable trends in spirits consumption in the US over the past few weeks has allowed the group to “slightly” upgrade its forecasts for Q1 to a dip of approximately 45%.

Rémy Cointreau added that due to an expected “moderate” decline in Q2, the group predicts that current operating profit will fall by between 45% to 50% on an organic basis for the first half of 2020/21.

The French firm also expects a “strong recovery” in the second half of its financial year, boosted by China and the US.

Value strategy 

Looking to the medium term, Rémy Cointreau said it “reiterates its aim of becoming the global leader in exceptional spirits, a segment in which the growth outlook remains attractive, particularly in a world of more responsible consumption”.

The group will focus on its value strategy and plans to build a business model that delivers profitable and responsible growth.

As a result, Rémy Cointreau has set “ambitious” targets including improved portfolio management to enable a gross margin of 72% and a current operating margin of 33% by 2020.

In addition, the group will roll out its Sustainable Exception 2023 plan, which aims to achieve sustainable agriculture across all land where its spirits are made. The firm pledges to reduce its carbon emissions by 25% for scopes one and two, and 30% across scope three by 2025.

Rémy Cointreau said the plan is the “first step” towards achieving the group’s goal of a net zero carbon footprint by 2050.

Last month, Rémy Cointreau completed its acquisition of Maison de Cognac JR Brillet for an undisclosed sum.