Source: Sharecast
The cognac and liqueurs specialist posted an 8.3% decline in sales in the six months to September end, to €489.6m. On an organic basis, sales softened 4.2%.
Operating profits were also sharply lower, down 26.2% at €108.7m, after the margin shed 4.5 percentage points at 68%.
Profits in the firm’s dominant cognac division tumbled 30.6% at €87.8m, despite an 0.7% uptick in volumes, after the price mix fell 8.4%.
Sales were particularly badly hit in China, which Remy said had been "compounded by the inaccessibility of Chinese duty-free". China and the US are Remy Cointreau’s most important markets.
In contrast, operating profits eased just 0.7% to €29.8m in liqueur and spirits - which includes Cointreau orange liqueur, Greek spirit Metaxa and Mount Gay rum - after a more modest 1% decline in the price mix.
However, despite the difficult start, Remy Cointreau confirmed its outlook for the full year, including growing organic sales by between stable and low single digits.
Operating profits were forecast to fall by between low double digits and mid-teens.
Marilly, who was appointed chief executive in June after former incumbent Eric Vallat resigned, said: "The first half of the year was challenging, but it also marks the start of a new era from Remy Cointreau.
"Despite a persistently tough environment, we remain confident in our ability to return to growth in the second half.
"It is time to challenge how we think and operate."
Marilly said that following a review of the business, he had identified five key areas to focus on, including reviving volumes, reviewing the brand portfolio and improving cash generation.
"We have the levers, the energy and the determination to set Remy Cointreau back on a path to creating lasting value," he added.
As at 1230 GMT, the Paris-listed stock was trading 3% higher.