French spirit maker Remy Cointreau shares nosedive 10% after sales drop,virus concern



by   |  VIEW 714

French spirit maker Remy Cointreau shares nosedive 10% after sales drop,virus concern

On Friday, the 24th of January 2020, roughly 300-year-old distillery and spirit manufacturer, Remy Cointreau had shrugged off more than a tenth of its market cap following the release of its third quarterly earnings’ report that posted a steep drop in sales over the quarter that ended on December 31st, 2019, while an outbreak of China Coronavirus had added further strains in to the company’s share price, since a drop in sales in China, the second-largest economy of the world that was accountable for roughly 35 per cent sales of luxury goods before the virus outbreak that led to the death of 29 people thus far and infected another 800, had been impacting the French spirit manufacturer’s premium cognac sales amid a China Lunar Moon New Year holiday.

On top of that, the French-based manufacturer of Remy Martin Cognac alongside Cointreau liquor had posted a fall of as much as 11.3 per cent in sales between October and December last year, which eventually had whacked its shares’ prices 11.65 per cent to €98.95 per share on Friday’s (January 24th) market closure.

Meanwhile, adding that the investors of French liquor maker, history of which could be traced back to as early as 1724, would have to wait until June this year for an annual earnings’ report alongside an update of the liquor maker’s strategy to brighten up its sales outlook, Remy Cointreau Chief Financial Officer, Luca Marotta said in a post-earnings’ call on Friday (January 24th), “The potential impact of the coronavirus, if any, will be significant for our business because we are exposed to China. We do not have a quantified scenario but clearly we are concerned as China is a major growth engine. ”