LEAD 1-Remy Cointreau-Hong Kong weighed on sales in Q2

PARIS, Oct. 18 (Reuters) – Remy Cointreau's sales in the second quarter were hurt by the drop in tourism in Hong Kong, especially those of cognac, the spirits group said on Friday, declining sales 4% on a like-for-like basis over the period.

Remy Cointreau reported a turnover of 300.7 million euros for the period from July to September (-1.3% in published data). Previously, it was expecting sales to accelerate in the second quarter, following a 3% decline in the first quarter on a like-for-like basis.

At 10:05, the title yielded 1.8% to 120.5 euros, underperforming the European sector index (-1.1%).

Organic sales of cognac Remy Martin, the group's main profit center, rose 2.1% in the first half, which compares with growth of 5.5% in the first quarter.

This slowdown is explained by "the fall of tourism in Hong Kong and a slower than expected replenishment at retailers in the United States," said the group in a statement. "This performance masks an ever-increasing demand for our cognacs."

A huge protest movement, created a few months ago by the rejection of an extradition bill to mainland China that has since been abandoned, has had a very negative impact on tourism and the local economy.

Remy Cointreau expects 2019-2020 to take place within the medium-term objectives of the group.

Spirits manufacturers were relieved to learn that US tariff increases starting this Friday did not concern cognac, champagne and "blend" whiskeys.

However, other categories of whiskey are hit.

Pernod-Ricard indicated the day before that it planned to raise the prices of some of its alcoholic concerned by the rise of taxes, like the Glenlivet.