French distiller Remy Cointreau reported fourth-quarter sales that beat estimates as the Chinese market improved.
Sales rose 9.8 per cent on an organic basis in the three months through March, the Paris-based company said in a statement Tuesday. Analysts expected a 5.6 per cent advance, according to the median of 15 estimates.
“With annual net sales in line with Group forecasts, Remy Cointreau confirms its objective of delivering positive growth in current operating profit for the 2015/16 financial year, at constant exchange rates and scope,” the company said.
Cognac makers are increasingly dependent on rising appetite from the US for growth amid a sputtering market for luxury goods in China. Hennessy-cognac owner LVMH signaled a gradual recovery in that market earlier this month after two years of falling demand.
The popularity of so-called classic cocktails in North America is also driving sector consolidation amid the rising use of liqueurs. Italian distiller Campari agreed to acquire Cointreau-competitor Grand Marnier for $760 million in March.
Total full-year revenue was €1.05 billion. Remy Cointreau said in June last year that it intends to become the global leader in spirits sold for $50 a bottle or more, a market that’s been growing faster than lower-priced booze.
News by Bloomberg, edited by Hospitality Ireland