Hong Kong market collapse causes ripples in luxury industries

H

Beverage producer Rémy Cointreau continues to be bothered by the ongoing protests in Hong Kong. Because of the chaos, many tourists stay away from the autonomous Chinese city-state, while they are an important target group for the luxury drinks seller. Due to the poor performance in the current financial year, Rémy Cointreau threw his financial goals overboard.

The beverage maker saw comparable sales in the third quarter of the broken financial year decrease by more than 11 percent to 290 million euros. In addition to the misery in Hong Kong, the company also lost distribution contracts in the Czech Republic, Slovakia and the United States. The fall in turnover in recent months was twice as strong as the experts in general had expected. The Cognac branch alone had a sales minus of 7.6 percent.

Rémy Cointreau took into account a slight increase in adjusted operating profit for the financial year that runs until March earlier. In the medium term, the company also wanted to get two thirds of its turnover from more expensive bottled drinks, also to improve profitability. When scrapping its own goals, the concern also pointed to the recent change at the top of the company.

About the author

Lesley Woutersen

Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by [email protected]

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Categories