Rémy Cointreau Sales Bounce Back

PARIS-- Rémy Cointreau SA's sales bounced back in its latest quarter, confirming that the maker of some of the world's priciest cognacs is climbing its way back to growth after a sharp drop in demand in China dragged down sales and profit for over a year.

Rémy Cointreau said sales in the fourth quarter rose to EUR224.2 million ($238.39 million) from EUR186 million, driven by a rebound in Asia and strong cognac sale in the U.S., Japan and Europe.

Stripping out currency moves, acquisitions and disposals, sales rose 23% in the quarter, compared with a 1% drop in the third quarter and a 5.5% drop in the second quarter. Rémy Cointreau's financial year runs from April through the end of March.

Rémy Cointreau has been one of the hardest-hit drinks makers from an anticorruption campaign by the Chinese government that led to the ban of extravagant gifts among officials more than a year ago. The company relies for more than half of its sales and margins on its flagship Rémy Martin cognac.

As demand fell off rapidly, Rémy Cointreau and other drinks groups stopped shipping bottles to China to bring down stocks in the country.

Rémy Cointreau said it still targets organic growth in operating profit for the full year. The group reports full earnings in June.

Write to Ruth Bender at [e-mail]

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