Remy Cointreau, the Paris-based owner of Remy Martin cognac, has adjusted its sales forecast for fiscal 2024 following a sharp decline in sales during the second quarter. The company reported sales of €379.2 million ($400.6 million) for the three-month period ending in September, representing a 17% decrease in reported terms and an 11% decrease organically. Cognac sales specifically saw a significant drop, falling to €261 million, down 24.5% in reported terms and 18% organically.
According to Remy Cointreau, market conditions in the United States have worsened, citing an intensely competitive environment coupled with high interest rates that have constrained distributors' ability to finance purchases. Initially, the company had anticipated a sales rebound in the third quarter of the fiscal year; however, it now believes this recovery may not occur until fiscal 2025.
As a result, Remy Cointreau has revised its sales projections for fiscal 2024, now expecting a decline ranging from 15% to 20% on an organic basis. This new projection falls below the previously stated guidance of stable sales.
Overall, the company faces challenges in the American market due to changing consumer preferences and financial constraints imposed by high interest rates. However, Remy Cointreau remains committed to navigating these obstacles and seeking future growth opportunities.
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