Remy Cointreau reports rise in first-quarter sales, raises guidance
Sales have spiralled in Remy's key U.S. and Chinese markets in recent years, forcing the company into multiple guidance downgrades and to scrap ambitious medium-term sales targets. But it said in June that the worst was over.
The maker of Remy Martin cognac and Cointreau liqueur said its first-quarter organic sales rose 5.7% year-on-year, well ahead of the 2.3% expected by analysts, returning to growth soon after new CEO Franck Marilly took the helm in May.
Remy said the quarterly rise was driven by a low base of comparison versus a year ago in the United States. Sales in China, meanwhile, continued to fall but Remy described the decline as "limited".
High U.S. inflation and gloomy consumer sentiment in China had already knocked Remy's business even before actual, or threatened, tariffs emerged in both markets.
China imposed steep duties affecting imports of cognac in October 2024. These were reduced as part of a deal between the industry and authorities in July, easing Remy's pain.
As a result, Remy now expects the annual blow from Chinese duties to be lowered to 10 million euros from 40 million euros projected previously. But it has hiked the hit expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros.
The revised U.S. forecast is based on the assumption that European exports to the U.S. would face a tariff rate of 30% - the level U.S. President Donald Trump has threatened to impose on August 1 unless ongoing talks result in a better deal. It previously assumed a 20% levy.
Remy also now expects its full-year operating profit to decline by mid- to high-single digits, an improvement on the mid- to high-teen decline it had previously anticipated.
The company makes around 70% of its sales from cognac, mostly in the U.S. and China, leaving it more exposed to tariffs and economic downturns than more diversified peers.
Remy's cognac sales grew 1.3% organically, also surpassing expectations, despite tough market conditions in China and a "sharp drop" in sales in Europe, Middle East and Africa.
($1 = 0.8518 euros)
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