French spirits group Remy Cointreau said that like-for-like sales growth slowed to 3.2% in the third quarter, as the late timing of the Chinese New Year and a high year-ago comparison basis weighed on its cognac sales.
The company makes Remy Martin cognac and Cointreau liquor.
But it told investors that a pickup in demand in China continued to be a key growth driver while demand in the US, the group's top market, stayed robust.
"Greater China confirmed its strong momentum both in the third quarter and the nine-month period. The United States, Russia, Africa and travel retail also contributed," Remy Cointreau said in a statement .
The Chinese New Year, a key moment for consuming and offering premium drinks, starts on February 16 this year, delaying its positive impact on sales to Remy Cointreau's fourth quarter.
The company said that adjusted for this on-off effect, like-for-like sales growth would have been around 6% in the quarter ended December 31.
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 €317.7m in the three months to December 31, showing like-for-like growth of 3.2%, compared with a 7% rise in the first half.
Cognac sales, which account for more than half the company's revenue, rose 5.5% year-on-year in the quarter. This followed a 15.4% rise in the first-half.
The figures were above analysts expectations of quarterly growth of 2.7% for the group and 4.6% for cognac.
Like its rivals Remy Cointreau benefits from a recovery in demand in China where it is pushing its $3,000 a bottle top-of-the-range Louis XIII cognac.
This strategy differs from that of rival Pernod Ricard, which has launched less expensive brands in China.
Private consumption of drinks and spirits has been picking up in China, offsetting the impact of an anti-corruption crackdown in the country on expensive gifts in recent years.
