Remy Cointreau sees full-year profit drop on China
PARIS, April 17
PARIS, April 17 (Reuters) - Remy Cointreau warned that full-year operating profit would plunge by between 35 percent and 40 percent after cognac sales fell 32.3 percent in the fourth quarter due to a Chinese government crackdown on ostentatious spending.
The maker of Remy Martin cognac, Cointreau liqueur and Mount Gay Rum said on Thursday that group sales reached 186 million euros ($256.8 million) in the three months to March 31.
The like-for-like year-on-year sales decline was 16.1 percent, against 18.9 percent in the third quarter.
Cognac sales alone slumped 32.3 percent in the fourth quarter, having fallen 32 percent in the third quarter, which was more than analysts' average estimate of a 30 percent fall. ($1 = 0.7243 Euros) (Reporting by Dominique Vidalon; Editing by James Regan)
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