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Remy Cointreau shares tumble after distiller warns of second-half slowdown

Shares in Remy Cointreau SA misplaced floor Thursday after the French distiller warned development would gradual within the second half of the yr towards more durable comparability bases.

At 0830 GMT, shares traded 4.2% decrease at EUR156.30.

The group
RCO,
-1.78%,
which makes Remy Martin cognac and Cointreau orange liqueur, backed its full-year steering for robust natural development, however stated the second half of the fiscal yr, which runs to March 31, would see some normalization after a few distinctive years reaping postpandemic demand.

Some advertising and marketing spend in China will probably be weighted to the second half given persevering with pandemic restrictions within the first a part of the fiscal yr, Remy stated.

Earnings in 1H liqueurs and spirits had been in the meantime beneath consensus amid a step-up in advertising and marketing and communication spend within the division, analysts at Jefferies famous following the print, although they argued that consensus affords a cushion for any second-half slowdown.

Write to Joshua Kirby at [email protected]; @joshualeokirby

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