PARIS-- Rémy Cointreau SA's sales fell 13% in the latest
quarter, in a sign that demand in the crucial Chinese cognac market
is still suffering but not as dramatically as in the past
quarters.
The French spirits maker said sales fell to EUR257 million ($330
million) in the quarter ended Sept. 30, a less sharp drop than in
the prior quarter and in line with the company's prediction of a
gradual improvement.
Organic sales--which strip out currency moves, acquisitions and
disposals--fell 5.5%.
The maker of Rémy Martin cognac has been hit hard by Chinese
President Xi Jinping's anticorruption drive, which has undermined
the long-standing tradition of gift-giving and fancy dining that
had previously propelled sales of Rémy's pricey cognacs in the
country.
Rémy confirmed its full-year targets. The company wants to reach
organic growth both in sales and operating profit. This target
excludes the loss of a distribution contract in the U.S., which
would have weighed on sales further.
Write to Ruth Bender at Ruth.Bender@wsj.com
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