PARIS: Rémy Cointreau SA’s second-quarter revenue topped analysts’ expectations, boosted by demand for cognac and other spirits in the U.S. and renewed growth in China.
Revenue rose to EUR294.8 million ($324.78 million) in the three months to Sept. 30 from EUR277.5 million in the same period last year. On a comparable basis, revenue rose 7.4%. Analysts expected a 4.3% gain.
The drinks group, which owns Rémy Martin cognac and Cointreau liqueur among other brands, is increasingly dependent on the U.S. market where demand for cognac has risen steadily in recent quarters. Sales in China, which were hit by a government crackdown on excessive spending and gift-giving that began in 2013, also continued to recover slowly, Rémy said.
Revenue of the company’s flagship Rémy Martin cognac rose 7.7%, topping the consensus for a 5.9% gain. Sales growth in the U.K., Russia and Australia also helped the company to beat expectations.
Rémy reiterated its outlook for the fiscal year ending March 2017, saying it expects to post organic growth in operating profit for the year.
