Remy Cointreau pulls medium-term guidance, but sees return to growth this year
Shares in Remy Cointreau were rising strongly in Paris on Wednesday despite the drinks giant pulling its medium-term guidance owing to tariff uncertainty, with full-year profits at the upper end of its target range.
The Rémy Martin and Cointreau maker said that its targets for the 2029-30 fiscal year – originally issued in 2020 – have been withdrawn, due to the "continued lack of macroeconomic visibility, the geopolitical uncertainties surrounding US-China tariff policies, and the absence to date of a recovery in the US market".
The decision also reflects the upcoming arrival of a new chief executive – last week was revealed to be luxury and cosmetics veteran Franck Marilly, succeeding Éric Vallat who resigned in April – "who will establish his own strategic roadmap".
Sales over the fiscal year ended 31 March totalled €984.6m, down 18% over the year before, with Cognac sales falling 22% on an organic basis, and liquors and spirts down 10%, reflecting inventory adjustments in the Americas and weakness in China.
However, operating profits came in at €217m, down 29% year-on-year but at the top end of guidance. The company said that it achieved €85m on cost savings over the year against the €50m in cuts targeted.
For the 2025-26 year, a return to mid-single-digit organic sales growth is expected, driven by a strong technical rebound in sales to the US, which started in the first quarter. Operating profits are expected to increase in the high single-digit to low double-digit range.
The stock was nearly 6% higher at €49.60 by 1233 in Paris.