French distiller Rémy Cointreau SA reported first-quarter sales that missed analysts' estimates, as wholesalers in China were cautious in ordering and the company modified its distribution network.
Sales fell 9 per cent on an organic basis in the three months through June, the Paris-based company said in a statement. Analysts expected a 5.4-per-cent decline. Total revenue rose 3.9 per cent to €223.3 million ($241 million), lower than the median of €232.9 million.
Asia has become less profitable for French distillers since the Chinese government’s measures against corruption and extravagant spending started denting the ultra-premium spirits market. Pernod Ricard SA and Moët Hennessy are refocusing strategies on the emerging middle class.
Rémy Cointreau said last month that it intends to become the global leader in spirits sold for $50 or more, an $18-billion market that’s growing at more than twice the pace of lower-priced alcohol.
Bloomberg News, edited by ESM
