French spirits group Remy Cointreau said today that sales growth accelerated in the third quarter, beating market expectations.
Growth was driven by robust demand in the US, its top market, and improving sales in China, the company said.
The company's brands include Remy Martin cognac and Cointreau liquor.
It said cognac sales notably benefited by anticipated shipments ahead of the Chinese New Year celebrations this month and improving travel retail trends.
Remy Cointreau, which is trying to sell more of its higher-priced spirits to boost profitability, kept its goal for growth in current operating profit at constant exchange rates and scope for the full year ending March 31.
Group sales reached €323.3m in the three months to December 31, showing like-for-like growth of 9%, compared with a 7.4% rise in the second quarter.
Cognac sales, which account for more than half the company's revenue, rose 22.3% year-on-year in the quarter. This followed a 9.3% rise in the second quarter and a 0.5% drop in the first.
Similar to other spirits makers, including larger rivals Diageo and Pernod Ricard, Remy Cointreau has faced pressure on sales of cognac and other luxury goods in China following a government crackdown on luxury gift-giving and personal spending by Chinese civil servants.
The crackdown has led to significant changes across the group, with Remy Cointreau moving more towards the US, which now contributes 38% of group sales compared to around 20% for China.
