Remy will report Q2 and H1 numbers on Thursday

Remy will report Q2 and H1 numbers on Thursday

Remy Cointreau is expected to deliver a strong US performance in its Q2 results later this week, but its achievements in China will be "critical", according to an analyst.

In a note published earlier today (15 October), analysts at UBS said that they expect "continued strength in the US" and "weak trading to continue in Western Europe," when the French group reports second-quarter numbers on Thursday. But, it added that the focus will be on whether the Chinese economy has slowed.

Analysts Kepler last month said that sales growth of Cognac is tailing off in China, with companies expected to report a temporary slowdown. 

In its note today, UBS noted that Remy said in July that China was remaining strong for the group. But the note added: "UBS estimates that China represents over 30% of Remy EBIT, therefore comments on China current trading (and inventory levels) will be critical." 

In July, Remy confirmed its GBP58m (US$90.3m) acquisition of Scotch whisky producer Bruichladdich.