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Late timing of Chinese New Year weighs on Remy Cointreau Q3
[PARIS] French spirits group Remy Cointreau said on Friday that like-for-like sales growth slowed to 3.2 per cent 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 Chinese New Year, a key moment for consuming and offering premium drinks, starts on Feb16 this year, delaying its positive impact on sales to Remy Cointreau's fourth quarter.
The company, which makes Remy Martin cognac and Cointreau liquor, said that adjusted for this on-off effect, like-for-like sales growth would have been around 6 per cent in the quarter ended Dec 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 317.7 million euros (S$514.11 million) in the three months to Dec 31, showing like-for-like growth of 3.2 per cent, compared with a 7 per cent rise in the first half.
Cognac sales, which account for more than half the company's revenue, rose 5.5 per cent year-on-year in the quarter. This followed a 15.4 per cent rise in the first-half.