The parent company of Remy Martin, Cointreau, Mount Gay rum and Bruichladdich expects operating profit to decrease by 20% to 25% in reported terms. Organic profit could decrease by as much as 30% due to the COVID-19 outbreak, the group warned.
These expectations imply a downturn of around 25% in Q4. However, Remy Cointreau was keen to emphasize that it holds around €300m in excess cash as of March 2020. It has overhauled its cost structure since February and it believes it should gradually benefit from these reduction efforts in the months ahead.
Last week, the firm restructured its management team after unveiling a new strategy. Laurent Venot moved from chief executive of the Europe, Middle East and Africa region to managing the company’s efforts in all geographic areas and distribution channels around the world, reporting to group chief executive Eric Vallat.
Remy Cointreau now has a smaller executive committee. “I will share in June our strategic vision for the years to come,” said Vallat. “However, it all starts with a tailored organisation, the reason for which I am pleased to formalise this new executive committee, narrowed and structured to reinforce the coherence of our actions with the nomination of a head of markets for the group.”
In China, the group has donated 1.2 million yuan to the Shanghai Soong Ching Ling foundation for the purchase of protective medical. In the US, it donated $200,000 to the US Bartenders Guild’s National Charity Foundation
Its production sites in France, the US, Barbados and Islay have shifted to producing hand sanitizer.
“Since the beginning of this crisis, more than ever, it seemed essential for us to embody our values, to show solidarity and mutual aid,” said Vallat. “It is as close as possible to our markets and our production sites that our teams personally commit to help, to the extent of their human resources and financial capabilities, and for as long as the pandemic requires it.”
