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Remy Cointreau beats Q2 sales forecasts, shares slip as recovery doubts linger

By Reuters News

Oct 28 (Reuters) - French spirits group Remy Cointreau RCOP.PA posted a 4.2% rise in organic second-quarter sales on Wednesday, beating forecasts as cognac shipments to China accelerated ahead of the Mid-Autumn Festival, but its shares fell 5% as investors took a cautious view of the recovery.

The group is seeking to rebuild growth after a prolonged downturn caused by US distributor destocking and weak demand in China.

  • Second-quarter organic sales rose 4.2% to €280.1 million ($311.47 million), ahead of a 3.6% average forecast in a company-compiled consensus

  • Cognac organic sales rose 12.4% to €189.9 million, beating analysts' expectations of €186.4 million

  • The group confirmed its full-year guidance

  • Remy now expects a tariff impact of about €5 million on current operating profit, versus around €20 million previously, and a positive currency effect of around €15 million on sales, versus a previous expectation of a €15 million hit

  • Analysts at TP ICAP Midcap said the group's recovery is already reflected in the share price, arguing the risk-reward profile has become less attractive after the stock's recent rally

($1 = 0.8993 euros)

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