Remy Cointreau notes that Fiscal 2020, which ended March 31, “was a singular year with the combined effects of (1) a global pandemic that severely limited consumption of spirits in the on-trade segment and purchases at airports, (2) the threat of U.S. tariffs, (3) a degree of global geopolitical instability and (4) the consequences of decisions specific to (Remy), such as changes in its European distribution network and its withdrawal from some Partner Brand distribution networks.”
It’s reported sales were off 9%, operating profit was down 18.6% (22% organic) and net profit, excluding non-recurring items plunged 26.9% (29.9% organic).
Sales at the House of Remy Martin fell 7.5% (5% reported). China remained strong, but Travel Retail, the U.S. (where retailers reduced their stocks) and Europe (due to changes in the distribution network) all were lower. The liqueurs and spirits division was down 3% (1% reported)).
For the current fiscal year, the company cited “more favorable trends in the U.S.” as it slightly upgraded forecasts for the fiscal first quarter to show a sales decline of around 45%. That’s pretty bad, but still better than the 50% to 55% it had been forecasting.