Remy Cointreau Sales Hit by Weaker Demand

PARIS-- Rémy Cointreau SA's sales fell 13% in the latest quarter, in a sign that demand in the crucial Chinese cognac market is still suffering but not as dramatically as in the past quarters.

The French spirits maker said sales fell to EUR257 million ($330 million) in the quarter ended Sept. 30, a less sharp drop than in the prior quarter and in line with the company's prediction of a gradual improvement.

Organic sales--which strip out currency moves, acquisitions and disposals--fell 5.5%.

The maker of Rémy Martin cognac has been hit hard by Chinese President Xi Jinping's anticorruption drive, which has undermined the long-standing tradition of gift-giving and fancy dining that had previously propelled sales of Rémy's pricey cognacs in the country.

Rémy confirmed its full-year targets. The company wants to reach organic growth both in sales and operating profit. This target excludes the loss of a distribution contract in the U.S., which would have weighed on sales further.

Write to Ruth Bender at [e-mail]

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