Rémy Cointreau Sales Beat Estimates On China Cognac Rebound
Rémy Cointreau SA reported second-quarter revenue that beat analysts’ estimates, led by growth in the US and improving Rémy Martin cognac sales in China.
Sales growth on an organic basis accelerated to 7.4% in the three months through September, having been unchanged in the previous quarter, the distiller said in a statement. Analysts expected a 4.3% gain. The stock rose as much as 6.7% in early Paris trading.
Rémy Cointreau said that demand for its cognacs is improving in China, after a government crackdown on extravagant spending had dented demand for the spirit. Rémy Martin sales rose 9.3% in the quarter, beating the 6% gain expected by analysts. While Rémy Cointreau and Hennessy-owner LVMH have seen better results in China in recent quarters, Paris-based distiller Pernod Ricard, which owns Martell cognac, has said that it’s too early to say whether China will return to growth this year.
Eamonn Ferry, an analyst at Exane BNP Paribas, called Rémy’s figures a “handsome beat, driven by both Rémy Martin and liquors and spirits”.
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