The French beverage manufacturer Rémy Cointreau has been less affected by the corona crisis in the first half of its broken financial year than expected. There is still talk of a strong decline in operating profit, but it is not as strong as previously forecast. The spirits were bought in the United States and China, among others.
Operating profit fell by 22.5 percent in the first half year. Sales of the maker of Rémy Martin cognac and Cointreau liqueur were 16.4 percent lower in the six months ending September.
The brandy branch saw an improvement in the second quarter compared to the first, as more drink was consumed at home in the US. The producer also benefited from a recovering market in China. This was reflected, among other things, by the rising sales during the moon festival in September, which was fully celebrated. There was also some improvement in sales in the Benelux. At the same time, however, a lot of income was lost because there were hardly any international travellers and therefore almost no drinks were sold in tax-free shops.
Nevertheless, stronger declines were expected. For example, it was previously predicted that profits would fall by more than 26 percent. Rémy Cointreau expects a “strong recovery” in the second half year, which started at the beverage manufacturer in October. The improving sales in the US and China should ensure this.