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Remy Cointreau said Friday it would seek to cut 100 million euros ($106 million) in costs after sales tumbled in what is proving to be a “harsh year” for the French spirits group.
During its first half year, which runs from April through September, sales plunged by 26.6 percent to 636.7 million euros, while volumes dropped by 19 percent.
“This year is a very harsh year for us,” chief financial officer Luca Marotta said in a conference call with investors.
Sales of cognac, including its Remy Martin brand, usually account for two-thirds of total sales, but they fell by nearly 35 percent during the half year period.
Sales plunged by nearly half in North America, but Marotta said “I don’t have a clue” why the drop was so steep.
Sales in China rose less than the company hoped given the end of Covid restrictions.
The company, which is also known for its orange-flavoured Cointreau liqueur, lowered its annual forecast, saying it expects a 15-20 percent drop in sales excluding currency fluctuations and sales and acquisitions.
It said it would cut 100 million euros in costs over the short and longer term.
Marotta said spending on marketing would be reduced but did not respond to questions on whether the firm was considering cutting jobs.
Shares in the company slumped 11 percent in midday trading, while the Paris CAC 40 index was down 0.6 percent.
Moncler has expanded its range from warm winter roots. The luxury label is all set to post results of the latest quarter and industry insiders are expecting to see a good raise in the brand’s growth in the market.
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