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Remy Cointreau Q4 Sales Down On Weak Demand; Warns On Profit, Q1 Sales

French wine and spirits company Remy Cointreau (REMYF.PK) reported Wednesday that fourth-quarter sales fell 24 percent to 210.8 million euros from 277.4 million euros last year. Organically, sales fell 25.4 percent.

As expected, the quarterly sales were heavily affected by the COVID-19 pandemic, which resulted particularly in the closure of on-trade outlets and the halting of international travel, first in Asia and subsequently in Europe and the United States.

Group Brands sales declined 20.8 percent to 205.9 million euros. The House of Rmy Martin sales declined 23.8 percent to 146.5 million euros. Liqueurs & Spirits sales were down 12.2 percent.

Partner Brands sales plunged 72.2 percent.

Looking ahead, the company now expects Current Operating Profit to decline by around 20 percent on a reported basis and by around 25 percent on an organic basis, in the financial year 2019/20.

Further, Remy Cointreau confirmed that wholesalers' destocking in Greater China, along with the sharp slowdown in key European and American markets due to the
ongoing public health crisis, is likely to severely impact sales in the first quarter of the 2021 financial year. At this stage, the company expects organic sales to decline by around 50 to 55 percent over the period.

The company reopened its Cognac production site on April 14 and its Angers site on April 20, with all requisite measures in place to protect employees' health.

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