Rémy Cointreau defies industry slump with strong sales growth
Rémy Cointreau has posted its first quarter of sales growth since early 2023, outpacing analyst expectations. The Cognac and liqueurs maker also raised its profit outlook despite looming US tariffs.
In contrast to Moët Hennessy, which saw sales continue to slump in the first half of this year, Rémy Cointreau has achieved its first three months of increasing sales since the start of 2023.
The group’s organic sales rose 5.7% in the three months to the end of June, well ahead of the 2.3% expected by analysts.
The company has also increased its full-year profits estimate despite the threat of US tariffs still looming.
Cognac sales still below pre-pandemic levels
Cognac sales were 3.1% up but remain 16% below the level achieved in the same quarter in 2020.
Liqueurs and spirits, including Cointreau, showed a 13% gain on last year and were almost 60% up on the pre-Covid level.
Rémy Cointreau said the 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 Rémy described the decline as “limited”.
Partner Content
Sales in the Americas rose by double digits.
Tariff impact reduced but still significant
US inflation remains high and the switch away from Cognac is deep, but there is hope that consumer sentiment in China will improve, if only gradually, now that Beijing has agreed to the minimum price selling plan agreed by the major Cognac companies.
The company said it now expects tariffs to affect it by €45m, down from the previous estimate of €65m.
While it reduced the amount related to Chinese duties from €40m to €10m, it increased the effect expected from U.S. tariffs on European goods by €10m to €35m, based on the expectation that President Trump will impose them at 30%.
Yesterday, LVMH predicted that they could be only 15% if the trade talks with Brussels proceed well before the August 1 deadline.
Profit outlook improves despite headwinds
Rémy Cointreau 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.
Related news
Rémy Cointreau signals fresh start under new CEO
Rémy Cointreau cuts outlook again as China and US weakness deepens
