French spirits group Remy Cointreau said sales growth stalled in the first quarter, reflecting weaker cognac revenue in Asia but there was robust demand for its premium cognac in the US.
The maker of Remy Martin cognac and Cointreau liquor is accelerating a drive to sell higher-priced spirits to boost profit margins.
It kept its goal to grow current operating profit on a comparable basis in the financial year that began on April 1.
"Quarterly volatility in sales has masked a further uplift in end demand for our products both in volume and value terms over the past few months," Remy Cointreau said.
Group sales reached €218.6m in the three months to June 30, flat on a like-for-like, year-on-year basis, and below analysts expectations of 1.5% growth.
Cognac sales alone eased 0.5% year-on-year in the first quarter, a sharp slowdown from 12.3% growth in the fourth quarter.
Analysts had been expecting first quarter cognac sales to be held back by inventory reductions following recent price increases and destocking in China.
