PARIS/LONDON (Reuters) - Remy Cointreau (>> Rémy Cointreau) on Tuesday provided more evidence that China is regaining its taste for cognac after the French drinks group reported stronger than expected sales, sending its share price up more than 7 percent.

The maker of Remy Martin cognac, Cointreau liqueur and Mount Gay Rum, said there was a clear improvement in China, where strong fourth-quarter trends capped a year of mid-single digit sales growth by volume.

Sales of cognac and other luxury goods fell in China following a government crackdown on corruption in 2014. This has hit other spirits makers, including larger rivals Diageo (>> Diageo plc) and Pernod Ricard (>> PERNOD RICARD). But in January, Remy Cointreau said premium cognac sales had improved in China in the last three months of 2015.

On the Chinese New Year holiday in February, Remy Cointreau Chief Financial Officer Luca Marotta said: "It was sound but not as good as we might dream."

Remy said overall sales reached 251.5 million euros (199 million pounds) in the three months to March 31, a like-for-like rise of 9.8 percent versus a 3.2 percent rise in the third quarter.

Barclays analysts said that compared to analysts' average forecasts for an increase of 5.2 percent.

"The strong Q4 results confirm our view that cognac growth rates have inflected," Barclays said in a research note. "With top-line improvement increasingly evident ... margin expansion should start from the second half of 2016."

Cognac sales alone jumped 12.3 percent like-for-like in the fourth quarter, after rising 6.4 percent in the third, Remy said, also citing strength in the United States, where cognac is enjoying a renaissance.

In the United States, Remy said its main drink brands were achieving sales growth of 16 percent in the last year.

The company stood by its target for positive growth in operating profit at constant exchange rates.

Remy shares were up 7.3 percent at 73.91 euros by 0812 GMT.

(Reporting by Martinne Geller and Dominique Vidalon; Editing by James Regan and Jane Merriman)

Stocks treated in this article : PERNOD RICARD, Rémy Cointreau, Diageo plc