By Dominique Vidalon and Emma Rumney
PARIS/LONDON, Jan 29 (Reuters) – Remy Cointreau’s third-quarter sales returned to growth and beat market forecasts on Thursday, driven by higher sales in the United States, pushing the cognac maker’s shares 8.5% higher.
A sector-wide downturn and the impact of tariffs in the U.S. and China, Remy’s two biggest markets, had led to quarterly declines in sales since 2023. Its share price had fallen by around 30% from a year ago.
The maker of Remy Martin cognac and Cointreau liqueur said it had “solid sales” in the Americas region. Global sales of cognac were up 3.2%, versus a rise of 1.4% expected by analysts.
Remy makes around 70% of its sales from cognac, mostly in the U.S. and China.
Conditions in China are still challenging for high-end spirits, Remy said. Its Asian sales reflected a negative calendar effect because of the late timing of the Chinese New Year, when spending on cognac spikes.
Its shares remained almost 8% higher at 0848 GMT.
CEO PROMISES A RETURN TO GROWTH
New CEO Franck Marilly has promised a return to growth in the second half of its current financial year and to revive volumes even if it means lowering prices.
On Thursday, Remy said it had employed an external consultant to help diagnose problems and offer solutions that it plans to deploy later in 2026.
The company’s 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.
Remy kept its full-year sales guidance unchanged, forecasting stable to low single-digit growth.
Analysts said investors would welcome the forecast-beating results, which would boost optimism for a recovery across luxury goods after a weak performance at rival cognac maker LVMH earlier this week.
Some remained cautious because Remy’s U.S. sales were boosted by an easy base of comparison after steep declines last year.
In a note, JP Morgan analysts said risks, including pricing pressures, remained for the current and coming financial year. Remy’s rivals have undercut it on price to take market share. Following suit will dent Remy’s profits.
($1 = 0.8347 euros)
(Reporting by Dominique Vidalon; Edited by Benoit Van Overstraeten, Sonali Paul and Barbara Lewis)
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