Remy Cointreau beats first-quarter sales forecasts as cognac returns to growth
Remy Cointreau’s First-Quarter Performance Overview
July 29 (Reuters) - French spirits group Remy Cointreau on Wednesday reported stronger-than-expected first-quarter sales, as growth in its cognac business and solid demand in Asian markets outside China helped offset ongoing weakness elsewhere.
Sales Figures and Analyst Expectations
Organic sales rose 1.3% to 223.2 million euros ($254.45 million), exceeding analysts' expectations for a 0.2% increase to 218.8 million euros, according to a company-compiled consensus.
Growth Recovery Efforts
Remy is seeking to rebuild growth after a prolonged downturn caused by U.S. distributor destocking and weak demand in China.
Cognac Division Performance
Its cognac division, which includes Remy Martin, returned to growth with organic sales up 7.7%, well above analysts' expectations for a 1.3% increase, supported by strong momentum in Asia-Pacific markets outside China.
Liqueurs and Spirits Division Results
Sales in the liqueurs and spirits division fell 6.6% organically, compared with expectations for a 1.5% decline, as unfavourable shipment timing in the United States weighed on performance.
Full-Year Outlook
The company maintained its full-year targets.
Additional Information
($1 = 0.8772 euros)
(Reporting by Hugo Lhomedet in Gdansk and Emma Rumney in London; Editing by Matt Scuffham)