Remy Cointreau reports strong second-quarter driven by cognac sales in China
Remy Cointreau sales continued to rise in the second quarter, beating analyst estimates.
The distiller generated EU€571.4mn (US$656.23mn) in sales in the first half of the year, dampening concern that the slowing Chinese economy would weigh on cognac sales.
Sales of Remy Martin cognac rose 12.2% in the second quarter, driven by an “excellent performance” in Asia-Pacific, specifically in Greater China.
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The Paris-headquartered firm said that its liqueurs and spirits division had a “more moderate start” with a 0.8% increase.
The company said it expects its liqueurs and spirits sales to pick up in the second half of the year as they conduct more communication campaigns.
Remy Cointreau has also refocused its strategy, shifting away from its cheaper brands and zeroing in on selling more expensive bottles of spirits.
In doing so, it hopes to tap into a rebound in the luxury Chinese market.
The distiller reaffirmed its standard forecasts for full-year profit to rise, assuming a constant exchange rate.