Remy Cointreau lifts profit outlook
French spirits powerhouse Remy Cointreau has recently revised its annual profit forecast upwards, signalling renewed confidence after months of uncertainty surrounding global trade tariffs.
The group, best known for its premium Remy Martin cognac, said it now expects a significantly smaller financial hit from US duties than previously feared (Pic: Pexels)
The group, best known for its premium Remy Martin cognac, said it now expects a significantly smaller financial hit from US duties than previously feared.
The company is projecting a €20 million impact from American tariffs on its 2025–2026 operating profit, down from an earlier estimate of €35 million.
Tariffs linked to the Chinese market are still expected to cost €10 million, bringing the total global tariff impact to around €30 million, an improvement on the €45 million Remy had previously budgeted for.
The outlook adjustment comes after several challenging years for the spirits maker, with sales in the US and China, which together account for the majority of Remy’s revenues, struggling to regain momentum.
In 2024–2025, operating profit slumped to €217 million, representing a 30.5% organic decline.
However, management now forecasts only a single-digit organic profit dip in the year ahead, compared with the steeper decline anticipated earlier.
Brokerage firm Jefferies said the latest forecast marked the company’s second upward revision as tariff pressures eased.
Analysts say lower costs will let Remy spend more on marketing, building its brand, and growing sales in key markets.
The news closely follows rival Pernod Ricard, parent company of Irish Distillers, which has also lowered its expected tariff costs, revising the figure to €80 million from €200 million.
Despite the improved guidance, shares in Remy Cointreau slipped 1.6% in morning trading, though the stock had climbed sharply previously.
With around 70% of sales tied to cognac, industry watchers note that Remy remains more exposed than diversified competitors, making it especially sensitive to shifts in trade policy and global economic trends.
