By Dominique Vidalon
PARIS, Jan 29 (Reuters) - Remy Cointreau said on Thursday group sales returned to growth in the third quarter of its fiscal year 2025/26, beating market expectations, driven by improving
sales in the key U.S. market.
This helped offset weakness in China, which, on top of still challenging conditions in demand for high-end spirits, faced a negative calendar effect tied to the late timing of the Chinese New Year.
The maker of Remy Martin cognac and Cointreau liqueur kept its full year guidance intact.
The entire spirits sector has suffered as a sales boom seen after the COVID-19 pandemic went into reverse, more recently exacerbated by tariffs on cognac imports in China and on EU goods entering the United States.
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 rivals amid escalating transatlantic trade tensions.
Remy Cointreau, however, said in June that the worst was over and in November new CEO Franck Marilly promised a return to growth in the second half of the year.
Remy Cointreau said its sales rose 2.8% on an organic basis to 245.8 million euros ($294.47 million) in the third quarter, compared with analysts' expectations of a 1.7% rise in a company-compiled consensus.
Sales of cognac, which makes up the bulk of Remy's revenue, were up 3.2% in the quarter at 150.2 million euros, versus a rise of 1.4% expected by analysts.
Remy reiterated it expects organic sales growth for the full-year 2025/2026 to range between stable and low-single-digits.
Remy, which plans to continue investing in China and the United States to sustain its recovery, also expects an organic decline in annual current operating profit of between low-double-digit and mid-teens.
($1 = 0.8347 euros)
(Reporting by Dominique Vidalon; Edited by Benoit Van Overstraeten and Sonali Paul)
