PARIS Oct 18 French spirits group Remy
Cointreau said on Tuesday that sales growth
accelerated in the second quarter due to improving cognac sales
in China and robust demand for its premium cognac in the United
States, its largest market.
Remy Cointreau, which is accelerating a drive to sell
higher-priced spirits to boost profit margins, kept its goal to
increase current operating profit on a comparable basis in the
full financial year that ends on March 31.
The maker of Remy Martin cognac and Cointreau liquor said
that sales reached 294.8 million euros ($330.21 million) in the
second quarter to September 30, for an organic growth of 7.4
percent, against a flat performance in the first quarter.
Sales of cognac, which contribute 59 percent of group
revenue, rose 9.3 percent year-on-year in second quarter, an
acceleration from a 0.5 percent decline in the previous quarter.
Like other spirits makers, including larger rivals Diageo
and Pernod Ricard, Remy Cointreau was hit by
falling sales of cognac and other luxury goods in China
following a government crackdown on corruption and conspicuous
consumption since 2014.
($1 = 0.8928 euros)
(Reporting by Dominique Vidalon; Editing by Mathieu Rosemain)