(Bloomberg) -- Remy Cointreau SA sales slumped in the first quarter of its fiscal year as the Cognac maker suffered from falling demand in the US and tougher markets in Southeast Asia.
Revenue fell 15.6% on an organic basis, the French maker of Remy Martin Cognac said Wednesday. That was worse than estimates for a 10.8% drop in a survey of analysts by Bloomberg.
Remy shares fell 2.2% in early Paris trading. They’ve lost 51% over the past 12 months.
Spirits makers have been facing dismal demand in the US and weakness in China in the wake of a pandemic-era boom. Remy shares have tumbled by nearly half in the past year, a weaker performance than larger rivals Diageo Plc and Pernod Ricard SA.
In the US, destocking of inventory “continued to take a heavy toll on sales in an overall market struggling with a fiercely promotional environment and depressed consumer demand,” Remy said in a statement.
The Asia-Pacific region saw a “slight decline,” hurt by a high basis of comparison, sluggishness in China and worsening consumption in Southeast Asia, Remy said.
Still, the company confirmed its goals for 2024-25, predicting a gradual recovery in sales over the course of the period. The fiscal first half is likely to see further inventory adjustments in the US and “mixed consumption levels” in Europe.
(Updates with shares in third paragraph)
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