Rémy Cointreau has posted mixed first half results, with an organic sales growth of 2.9 per cent to approximately $569.2m.
Sales in the Americas region experienced a 5.5 per cent decrease due to a destocking in the area and a change in distribution in the United States.
During the second quarter, organic sales increased by 12.4 per cent within the cognac division to approximately $377.3m.
There was a standout performance in China ahead of the mid-Autumn festival while Cognac sales in the Europe, Middle East and Africa (EMEA) region.
The company’s sales in the liqueurs & spirits segment declined by 7.4 per cent to around $189.4m in the second quarter, which was negatively impacted by distribution in the US.
The business’ partner brands reduced by 76.7 per cent organically in the second quarter, which was due to a pause in distribution in the Benelux countries from April onwards.
Moving forward, the company Rémy Cointreau forecasted a return to sustainable organic sales growth with momentum expected to build over the upcoming year.
Additionally, the business forecasted a full-year currency effect of an approximately $16.7m increase in sales compared to the previously forecasted $16.7m decrease.
Additionally, the business now expects tariffs to have an overall impact of around $5.6m on current operating profit compared to $22.3m before.
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