PARIS, Nov 28Reuters Remy Cointreau said firsthalf operating profit fell less than feared despite lower sales, thanks mostly to cost cuts, providing some relief to the embattled spirits maker facing tariffs in its key U.S. and Chinese markets.

The maker of Remy Martin cognac and Cointreau liqueur, which last month dropped hopes for a quick recovery in sales, predicted organic sales would decline by between 15 and 18 in fullyear 202425, with a current operating profit margin of between 21 and 22 on an organic basis.

Remy reported operating profit of 147.3 million euros 155.30 million for the first six months of fiscal 202425, which ends on March 31. That was a likeforlike fall of 17.6, lower than expectations of a 20.6 decline in a companycompiled poll of 15 analysts.

Remy Cointreau sales have suffered steep declines as retailers and wholesalers cut expensive spirits from inventories, while demand stayed sluggish in China39;s weakening economy.

The U.S. and Chinese markets drive the majority of cognac sales, which account for around 70 of Remy39;s revenues.

Beijing has slapped tariffs of between 30 and 40 on imports of EU brandy, hitting French firms such as Hennessy, Pernod Ricard and Remy Cointreau days after the 27state bloc voted for tariffs on Chinesemade EVs.

On Thursday Remy said it had taken note of the provisional decision by China39;s commerce ministry to apply additional duties of 38.1 on cognac imports from October 11, 2024.

If this decision is…