Cognac maker Remy Cointreau tops sales forecasts as US improves (updated)
29/01/2026 07:12
Remy sales have declined since 2023 New CEO promised return to growth and strategy changes Sales of cognac well ahead of forecasts Shares rise but analysts are cautious Updates shares in paragraph 6, investor comment in paragraphs 12-13, adds graphic By Dominique Vidalon and Emma Rumney PARIS/LONDON, Jan 29 (Reuters) - Remy Cointreau's RCOP.PA 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 in early trade. 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. CEO PROMISES A RETURN TO GROWTH 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 4% higher at 1130 GMT. 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. Remy's results follow a weak performance by rival cognac maker LVMH LVMH.PA this week that dented hopes of a recovery across luxury goods and further dampened the mood around the struggling wine and spirits sector. Sentiment on alcohol is so "bombed out" at the moment that even flickers of improvement can drive big share reactions like Remy's, said Ryann Dean, global analyst at Remy investor Aylett Fund Managers. Its results were "still bad, but slightly less bad than expected", he continued, adding there were some positive signs but he remained cautious. ($1 = 0.8347 euros) Cheap drinks: spirits companies suffer https://www.reuters.com/graphics/ALCOHOL-WRAP/SPIRITS/dwpkqbldqpm/chart.png (Reporting by Dominique Vidalon; Edited by Benoit Van Overstraeten, Sonali Paul, Barbara Lewis and Alison Williams) ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net/))