Remy Cointreau Sales Beat Estimates on China Cognac Reboundby
Shares rise as Remy Martin cognac sales advance 9.3%
Cognac maker says U.S. demand also spurred revenue growth
Remy Cointreau SA reported second-quarter revenue that beat analysts’ estimates, led by growth in the U.S. and improving Remy Martin cognac sales in China.
Sales growth on an organic basis accelerated to 7.4 percent in the three months through September, having been unchanged in the previous quarter, the distiller said in a statement Tuesday. Analysts expected a 4.3 percent gain. The stock rose as much as 6.7percent in early Paris trading.
Remy Cointreau said demand for its cognacs is improving in China after a government crackdown on extravagant spending had dented demand for the spirit. Remy Martin sales rose 9.3 percent in the quarter, besting the 6 percent gain expected by analysts. While Remy 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 it’s too early to say whether China will return to growth this year.
Eamonn Ferry, an analyst at Exane BNP Paribas, called Remy’s figures a “handsome beat, driven by both Remy Martin and liquors and spirits.”