Euro Surge to Curb Remy Cointreau Profit Despite Cognac Revival

Strong euro expected to cut into distiller’s full-year profit
CFO cites ‘very brutal’ currency fluctuations over two months

A bottle of Remy Martin cognac, produced by Remy Cointreau SA, is arranged for a photograph in London, U.K., on Tuesday, Oct. 18, 2011. U.K. shop-price growth was unchanged in September as supermarkets absorbed costs to attract shoppers squeezed by rising fuel and utility prices, the British Retail Consortium said.
Photographer: Chris Ratcliffe/Bloomberg

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By Thomas Buckley

January 19, 2018 at 6:34 AM UTC

Updated on

January 19, 2018 at 11:06 AM UTC

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Despite a cognac revival in China that’s boosting Remy Cointreau SA’s sales, the French distiller says its full-year profit will be dented by currencies losing ground to the strong euro.

Earnings will be cut by 17 million to 18 million euros ($21 million to $22 million) this year from the deterioration of the U.S. and Hong Kong dollars and the Chinese yuan against the euro, Chief Financial Officer Luca Marotta said.