Remy Cointreau SA said first quarter sales fell sharply, as expected, with US consumption of cognac dropping to more normal levels following a boom in 2022.

The French spirits maker said sales fell 35% on an organic basis to €257.5 million ($285.2 million) as cognac sales plunged 45% against unusually high comparables the previous year that were driven by a surge in the US.

The sales drop matched analyst consensus estimates of a 35% plunge.

Remy said sales in the Asia Pacific region — including China — rose steeply, without providing specific increases.

The company reiterated its annual forecast of stable organic sales growth — with a strong decline in the first half, driven by the US, and a second-half rebound fueled by a US recovery that will begin in the third quarter. There will also be a continued comeback in China, it said.