FRANCE: Remy Cointreau toasts China's Cognac thirst in Q3
- Cognac drives 18% sales rise
- Group thrives on Chinese thirst
- Expects tougher Q4
Cognac drives Remy Cointreau's Q3 sales rise
Net sales for the three months to the end of December increased by 17.5% to EUR266.7m (US$358.5m), Remy Cointreau said today (20 January). Cognac sales rose by 26% on the same quarter of the previous year, to EUR128.1m.
The French group said that Remy Martin "continued to develop strongly in Asia" during the quarter. The Cognac brand's sales increased by 19% excluding currency gains, with momentum also returning to travel retail and the US.
China's thirst for high-end Cognac has put the company on a good trajectory for its fiscal year. "The group forecasts good growth in turnover and financial results for the 2010/11 financial year," said Remy. However, sales are set to slow in the fourth quarter due to the earlier timing of Chinese New Year, the group added. Its share price fell by 3% in early trading.
The group's Champagne business, which is set to be sold off, increased sales by 11% in the third quarter. Meanwhile, Remy's spirits and liqueurs division continued to be hampered by sales declines for Metaxa in Greece.
For the first nine months of the year, Remy reported sales up by 18% on the previous year, to EUR694.8m. Currency gains accounted for 7% of the increase.
For the full announcement, click here.
Rémy Cointreau has emerged relatively unscathed from a drop in full-year profits, thanks to its potential in premium spirits....
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