22 September 2018

Rémy Cointreau profit hit by China slowdown, WSJ says

Rémy Cointreau S.A. warned that China’s campaign against extravagance will significantly affect profit this year and dent sales for some time, the Wall Street Journal reported on Tuesday, citing the company’s chief executive Frederic Pflanz. Operating profit would drop at least 20 percent for the year ending March 31, the company was quoted as saying. Net profit fell 20 percent to 69.3 million euros (US$93.7 million) for the six months ended Sept. 30, the newspaper said, noting that higher charges also weighed on the results. Over the past few years, Rémy Cointreau posted double-digit increases in full-year operating profit, boosted mainly by strong demand for expensive cognacs and other spirits in China, the report said. The company’s profit warning battered its shares and those of rivals such as Pernod Ricard S.A., it added.

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