Remy Cointreau posts 35% profit drop, shares jump on recovery hopes
French drinks group Remy Cointreau reported a 35% drop in full-year net profit on Thursday as tariffs slammed sales in its key China and US markets. Despite this, shares soared more than 10% on Thursday morning.
Published on 04/06/2026 - 12:05 GMT+2
Remy Cointreau SA reported a sharp fall in annual profit, although the result exceeded analysts' expectations, with improving performance in the Americas helping offset the impact of tariffs in key markets, including the US and China.
A strong euro against major currencies also made its cognac and other liquors more expensive on global markets, with higher production costs weighing on profit margins.
The group has struggled in recent years against US President Donald Trump's tariffs and China's retaliatory levies on cognac imports.
CEO Franck Marilly said in a statement that "we have won several key battles" in what he called "a persistently complex macroeconomic and geopolitical environment".
Net profit fell to €78.7 million in its financial year to end-March from €121.2mn a year earlier, on sales that fell 5% to €935.3mn.
Remy Cointreau saw its current operating profit margin fall to 17.7% from 22%, though the company forecast a "slight" improvement in the margin for the current year, even though it still expects US and Chinese tariffs and the strong euro to weigh on the bottom line.
However, the company's shares jumped in opening deals on the Paris stock exchange. At around 9:45 a.m., the shares were trading up around 12% at €42.12.
This came as the company launched a three-year turnaround plan designed to boost growth and strengthen its business model, as the French spirits group seeks to regain market share in a challenging economic environment.
Under its RC Forward programme, the company plans to expand in emerging markets and global travel retail, unlock growth from its premium cognac portfolio and improve operational efficiency.
The group said the plan is expected to generate approximately €100 million in additional operating profit and efficiency gains by 2028-29 compared with 2025-26.
"Our brands are regaining ground in the United States, Remy Martin is strengthening its leadership and market share in China, and our Travel Retail business is gradually recovering, with the aim of doubling in size within three years," Marilly said in a statement, referring to duty-free sales at airports.
Analysts say escalating tensions in the Middle East could add further uncertainty for consumer goods companies if higher energy prices continue to weaken spending.
For the next financial year, the company is targeting a return to organic sales growth, alongside a modest improvement in its current operating margin.
"In 2026-27, Remy Cointreau anticipates a return to sustainable organic sales growth, with momentum expected to strengthen progressively over the year," the company said.
