Sales go flat at drinks giant
French distiller Remy Cointreau has reported fourth- quarter sales that disappointed analysts as sales of liqueurs and spirits declined after the company phased out its lower-priced offerings.
Organic sales growth was 0.9pc, while the company-compiled consensus was for a 1.7pc increase.
The stock slumped by as much as 6.1pc in early Paris trading yesterday.
Revenue ebbed after two quarters of faster growth. Sales of liqueurs and spirits declined 7.7pc, more than double the decline analysts expected. The business weakened as Remy Cointreau decided to focus on higher-end spirits and reduce volumes of Mount Gay rum and its St-Remy brandy.
"Management is de-emphasising the low end of the portfolio which is a sensible strategy, but could create a short-term headwind," wrote Robert Waldschmidt, an analyst at Liberum.
He has a sell recommendation on the stock and expects the price to decline to €70. The stock fell 4.4pc to €88.22 as of 9:19 am local time. (Bloomberg)