Remy Cointreau has reported better-than-expected sales for its fiscal second quarter, helped by improving demand in key Chinese market for its cognac brands. The results helped push up its first-half figures, following a bleak first quarter.
For the three months to 30 September, sales were up 7.4% year-on-year to €294.8m on an organic basis (+6.2% reported), comparing favourable to flat sales in the first quarter. Sales of its Remy Martin cognac were up 9.3% (+7.7% reported), reversing the 0.5% decline in Q1, while sales at its Liqueurs & Spirits division rose by 10.1% (+9.1% reported).
The result meant the group’s first-half sales rose by 4.1% on an organic basis to €500.7m (+2.5% reported), with Cognac sales and its Liqueurs & Spirits division reporting growth of 5.1%.
The group noted that demand for premium brand in the US remains strong, but it added that it was “positively surprised by the acceleration we are experiencing in Greater China.” The group said it is comfortable with the average analyst estimate for full-year operating profit to grow by 8% on an organic basis.