PARIS (Reuters) - Remy Cointreau (PA:RCOP) expected first-half core profit to fall 25-30%, which marked an improvement from its previous guidance, as second quarter sales beat forecasts thanks to robust demand for its premium cognac in the United States and China.
Demand was buoyed by customers staying in at home in the United States, and by a recovery in China during the country's Mid-Autumn celebrations, which partly offset a slump in travel retail sales triggered by the coronavirus pandemic.
Second quarter sales reached 280.8 million euros (255.5 million pounds), down 4% at constant exchange rates and excluding the effect of acquisitions or disposals.
This was better than market expectations of a 5.9% fall in the second quarter, and followed a 33.2% sales decline in the first quarter.
In July, Remy had forecast current operating profit for the six months ended Sept. 30 to fall by 35-40%.
