Remy Cointreau underlying profits, sales weaken in H1 | Progresiv
Remy Cointreau has reported a decline in underlying profits and sales for its fiscal first half, hurt by promotional spending and the impact of the protests in Hong Kong. 
For the six months to 30 September, net sales declined by 3.6% to 523.9 million euros on an organic basis (-0.6% reported), while underlying net profit slid by 8.2% to 84.6 million euros.
The spirits major noted that sales of its Remy Martin brands were up 2.1% on an organic basis to 367.2 million euros, while sales of Liqueurs & Spirits were up 4.9% to 128 million euros. However, sales of Partner Brands slumped by 71.4% to 13.1 million euros.
The company reported good demand for cognac in China but was hurt by the drop in tourism in Hong Kong and weaker demand for cognac in the US.
Remy Cointreau has forecast that its underlying operating profit for the full year would be flat, but it has reiterated its outlook for the medium-term. (www.kamcity.com)
