French spirits group Remy Cointreau today reported a 14.6% fall in first-half current operating profit.
A Chinese government crackdown on ostentatious spending has hit demand for its premium cognac.
The maker of Remy Martin cognac, Cointreau liqueur and Mount Gay Rum said that the global economic climate remained "mixed".
But it added that it was sticking to its forecast of delivering organic growth in full-year sales and operating profit.
Like its global rivals Diageo and Pernod Ricard, Remy has been hit by a Chinese government crackdown on gift-giving and personal spending by civil servants, as well as slowing economic growth in the world's second-biggest economy.
All three have however forecast improving sales this year.
Current operating profit for the six months to September 30 reached €102.1m, down 14.6% like-for-like from a year ago. It however was above analysts' expectations for €89m in operating profit, according to a Thomson Reuters poll.
The decline reflected destocking efforts in China, notably in premium cognac, and a rise in commercial expenses to beef up the group's distribution network, Remy said in a statement.
Remy Cointreau's focus has been on deluxe drinks like Louis XIII cognac, which sells for €2,500 a bottle. This has made it more vulnerable than its rivals to China's crackdown.
Cognac represented 59% of Remy's sales in the first-half and 76% of its operating income, with China accounting for roughly half of that chunk of profit.
The China slowdown contributed to a 27.7% fall in first-half operating profit for the Remy Martin cognac division, to €78m.
Remy's liqueurs and spirits division, where operating profit jumped 44.6% in the first half, was a bright spot as Cointreau sales grew in the US and in key European markets.
The Metaxa liquor had double-digit sales growth and the Bruichladdich Scotch whisky doubled its sales, Remy said.
