French spirits company Rémy Cointreau reported high annual sales, helped by strong demand for its premium cognac in China, keeping its target for profit growth this year.
The group, which makes Rémy Martin cognac and Mount Gay rum, said that sales came in at €1.127 billion ($1.39 billion) for its 2017/18 full financial year, which ended on 31 March.
"With full-year sales in line with the group's forecasts, Rémy Cointreau confirms its guidance of growth in current operating profit for the financial year 2017/18, assuming constant exchange rates and consolidation scope," it said.
Cognac Sales
In the fourth quarter alone, demand during the Chinese New Year festivities in February lifted cognac sales by 18.3% on a like-for-like basis.
Like its rivals, Rémy Cointreau is sensitive to demand in China, where it has been marketing premium spirits, including its $3,000-a-bottle, top-of-the-range Louis XIII cognac.
The private consumption of drinks and spirits has been recovering in China, offsetting the impact from the country's anti-corruption crackdown over the past few years, which had hit sales of premium-brand drinks.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
