PARIS, Nov 24 (Reuters) – Shares in Remy Cointreau (RCOP.PA) fell as a lot as 4% on Thursday after the French spirits maker stated it was “cautiously optimistic” concerning the Chinese language market the place COVID-19 continues to set off lockdowns.
The maker of Remy Martin cognac and Cointreau liqueur posted a stronger-than-expected 27% soar in first-half working revenue however caught with its steerage for a slower second half as consumption traits return to extra regular ranges.
CEO Eric Vallat stated he was “cautiously optimistic” about enterprise prospects in China forward of the Chinese language New 12 months as on-again, off-again lockdowns clouded the outlook.
China on Thursday logged a file rise in COVID infections.
Vallat added he was assured in China within the longer-term resulting from sturdy urge for food there for its premium cognacs in addition to its whiskies.
“In China, we’re ensuring we’re versatile, up to now we have now tailored efficiently to the scenario,” he stated.
Remy Cointreau shares had been down 1.4% at 1058 GMT having fallen as a lot as 4%.
“If, after two distinctive years, the pattern is in direction of the normalisation of consumption traits, most likely till Q1 23-24 and if China stays difficult, Remy Cointreau continues to be an distinctive worth for the spirits sector,” MidCap analysts stated in a word.
The corporate has seen two years of remarkable progress because the pandemic accelerated a shift in direction of premium drinks, cocktails and e-commerce as individuals drank dearer drinks at house.
Working revenue for the six months to Sept. 30 got here in at 319.3 million euros ($333.1 million), outperforming a company-compiled consensus of 306 million euros.
Working revenue at its cognac division, which accounts for almost 90% of group revenue, surged 36% to 299.7 million euros within the first half.
The corporate expects “low double-digit gross sales progress” for the complete yr with a slower tempo of progress within the third quarter earlier than selecting up once more the fourth, Vallat advised reporters.
The corporate had beforehand reported a 21.1% soar in first-half gross sales, boosted by a restoration in demand for its high cognac manufacturers in China in the course of the nation’s Golden Week holidays.
($1 = 0.9587 euros)
Reporting by Dominique Vidalon; modifying by Edwina Gibbs and Jason Neely
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