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Reuters
25-07-2025
- Business
- Reuters
Remy Cointreau sales rise, profit view lifted on China tariff deal
LONDON, July 25 (Reuters) - French spirits maker Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday after damaging Chinese tariffs were reduced. Sales have slumped in Remy's key U.S. and Chinese markets in recent years, forcing the company into multiple guidance downgrades and to scrap 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, beating analyst forecasts and returning to growth soon after new CEO Franck Marilly took the helm in June. Shares rose over 5.5%, even as Chief Financial Officer Luca Marotta warned that Remy's sales would decline in the second quarter before rebounding later in the year, and that trends in the U.S. remained below expectations. "It was a positive quarter, so I'm very eight negative (quarters)," Marotta told analysts on a call. Remy said the quarterly rise was driven by a low base of comparison a year ago in the United States. Sales in China continued to fall, but Remy described the decline as "limited". "After two years of declining growth, I think it's the beginning of good news," said Charles de Riedmatten, fund manager at Myria AM, a Remy investor. Questions remained about underlying demand for cognac and how the new CEO, who has a background in luxury goods but not spirits, will perform, he said. High U.S. inflation and downbeat Chinese consumers had already knocked Remy's business even before tariffs - actual or threatened - emerged in both markets. In July, the cognac industry agreed a deal with China that would ease steep duties imposed since October 2024. As a result, Remy now expects the annual blow from tariffs to fall to 45 million euros from 65 million euros previously, driven by a reduction in the impact from Chinese duties from 40 million euros to 10 million euros. However, it hiked the hit expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros, to reflect U.S. President Donald Trump's threat to impose a 30% tariff on EU imports from August 1. Remy expects its full-year operating profit to decline by mid- to high-single digits percentage, an improvement on the mid- to high-teen decline it 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. ($1 = 0.8518 euros)
Reuters
25-07-2025
- Business
- Reuters
Remy Cointreau lifts profit view as sales return to growth
LONDON, July 25 (Reuters) - French spirits maker Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday as tariff threats receded. Sales have slumped in Remy's key U.S. and Chinese markets in recent years, forcing the company into multiple guidance downgrades and to scrap 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, beating analyst forecasts and returning to growth soon after new CEO Franck Marilly took the helm in June. The company's shares rose over 4% on the news. Remy said the quarterly rise was driven by a low base of comparison a year ago in the United States. Sales in China continued to fall, but Remy described the decline as "limited". "After two years of declining growth, I think it's the beginning of good news," said Charles de Riedmatten, fund manager at Myria AM, a Remy investor. He added, however, that it was hard to assess the quality of growth Remy described as technical. Questions remain about underlying demand for cognac and how the new CEO, who has a background in luxury goods but not spirits, will perform, he continued. High U.S. inflation and downbeat Chinese consumers had already knocked Remy's business even before tariffs - actual or threatened - emerged in both markets. In July, the cognac industry agreed a deal with China that would ease steep duties imposed since October 2024. As a result, Remy now expects the annual blow from tariffs to fall to 45 million euros from 65 million euros previously, driven by a reduction in the impact from Chinese duties from 40 million euros to 10 million euros. However, it hiked the hit expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros, to reflect U.S. President Donald Trump's threat to impose a 30% tariff on EU imports from August 1. Remy expects its full-year operating profit to decline by mid- to high-single digits percentage, an improvement on the mid- to high-teen decline it 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. ($1 = 0.8518 euros)
Reuters
25-07-2025
- Business
- Reuters
Remy Cointreau reports rise in first-quarter sales, raises guidance
LONDON, July 25 (Reuters) - French spirits maker Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday as tariff threats receded. 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)
Fashion Network
04-06-2025
- Business
- Fashion Network
Remy Cointreau withdraws its mid-term goals and posts lower annual profits
French spirits group Remy Cointreau reported a smaller-than-expected 30.5% drop in annual organic operating profit, withdrew its mid-term goals, and said sales would return to mid-to-single-digit growth during the next financial year. The maker of Remy Martin cognac and Cointreau liqueur said on Wednesday that the lower profits reflected weak sales in its key markets of China and the United States, where the group also faces tariff threats. Remy Cointreau, which last week named luxury goods veteran Franck Marilly as its new chief executive, said it had decided to withdraw its objectives for 2029–30, citing continued uncertainty around tariffs. Its group operating profit fell 30.5% on an organic basis to 217 million euros ($246.7 million) for the full year ended March 31, 2025. This compares with analysts' expectations of a 31.7% fall in a company-compiled consensus of 15 analysts. ($1 = 0.8796 euros)
Yahoo
04-06-2025
- Business
- Yahoo
Rémy Cointreau latest spirits major to ease back on forecasts
Rémy Cointreau has become the latest major distiller to withdraw mid-term guidance. The French spirits group today (4 June) pulled its objectives for 2030 – drawn up a decade ago. The Rémy Martin Cognac maker pointed to 'the continued lack of macroeconomic visibility', tensions over tariffs and uncertainty over when the US market would recover. Rémy Cointreau also cited the appointment of its new CEO, a move announced last week. The Bruichladdich whisky maker said Franck Marilly 'will establish his own strategic roadmap while remaining aligned with the value strategy implemented by the group for decades'. He joins later this month. Analysts expected the withdrawal the guidance, which came alongside the publication of Rémy Cointreau's annual financial results. In February, Diageo pulled its medium-term guidance, citing 'macroeconomic and geopolitical uncertainty'. The same month, Pernod Ricard cut its sales forecasts, saying 'intense geopolitical uncertainties' were hitting the spirits sector. Rémy Cointreau published its full-year sales at the end of April but today's announcement covered the group's profits. So-called current operating profit fell 28.7% to €217m ($247.8m) and by 30.5% on an organic basis. The group share of net profit decreased 34.4% to €121.2m, or by 36.8% organically. In April, the Cointreau liqueur maker posted an 18% decline in full-year sales on an organic basis to €984.6m. Last year, the group set out plans to find €50m in costs during the fiscal period. It said today it had extracted €85m. For Rémy Cointreau's new 2025-26 financial year, the company expects sales to return to 'mid-single-digit growth on an organic basis'. The company said the recovery would be 'driven primarily by a strong technical rebound in sales to the United States' starting in the first quarter. In a sign of the uncertainty about tariffs, not just on imports to the US but on EU brandy shipments to China, Rémy Cointreau's guidance for current operating profit was for growth 'in the high single-digit to low double-digit range' – but 'excluding any increase in customs duties in China and the United States'. At the moment, the company's 'worst-case scenario' is for the potential increase in tariffs to amount to €100m gross. Rémy Cointreau's share price, down by more than 42% in the last 12 months, was up 5.12% at €49.32 today at 17:00 CEST. "Rémy Cointreau latest spirits major to ease back on forecasts" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
