Paris, April 26, 2024 (Financeflashnews): Shares in French cognac maker Remy Cointreau jumped 6.8% on Friday after the company reported better-than-expected fourth-quarter results. The company saw a smaller-than-anticipated decline in sales thanks to robust cognac sales growth in China.
China Boom: Organic cognac sales in China soared by 15.4%, outpacing analyst expectations of stagnation. The company attributed this growth to marketing initiatives surrounding the Lunar New Year, which fell later this year than usual.
Weak US Performance: Overall group sales dipped by 0.7%, coming in better than the forecasted 3.4% decline. However, US sales plummeted by 39.6% due to destocking by retailers and wholesalers, coupled with heightened promotional activity from competitors.
Remy Cointreau’s results surprised investors and suggest that demand for cognac in China remains strong. The company’s shares could continue to rise in the short term.
Key Takeaways:
- Remy Cointreau is a French cognac producer known for brands like Remy Martin and Louis XIII.
- The company heavily relies on the Chinese market, which accounts for over 70% of its sales.
- Strong Chinese sales growth offset weak US performance.
- Remy Cointreau’s shares are poised for further gains.
Important Information:
- Q4 China Cognac Sales Growth: +15.4%
- Q4 Group Sales Decline: -0.7%
- Q4 US Sales Decline: -39.6%
Sources:
