Remy Cointreau reports drop in full-year profit, halves dividend
Remy Cointreau reports drop in full-year profit, halves dividend
Overview
France-based premium spirits maker's full-yr organic sales flat, reported sales down 5%
Operating profit fell 11.5% organically, mainly on lower gross margin and higher costs
Adjusted EPS declined 17.8% organically; company to halve dividend for the year
Outlook
Remy Cointreau expects a return to organic sales growth in 2026-27
Company anticipates a slight organic improvement in current operating margin for 2026-27
Remy Cointreau expects a negative currency effect of €15 mln to €20 mln on sales and €5 mln to €8 mln on operating profit in 2026-27
Result Drivers
GROSS MARGIN PRESSURE - Lower gross margin driven by incremental customs duties, unfavorable price mix, and higher production costs, partially offset by overhead cost control
COGNAC DIVISION MIX - Cognac sales saw volume growth but were offset by a negative price mix, with Americas growth and APAC decline; operating profit fell due to lower gross margin and higher costs
CURRENCY EFFECTS - Negative currency movements, mainly in the US dollar and renminbi, weighed on reported sales and profit
Company press release: ID:nBw5BjdkCa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| EUR 935.30 mln |
|
FY Adjusted EPS |
| EUR 1.71 |
|
FY EPS |
| EUR 1.51 |
|
FY Adjusted Net Income |
| EUR 89.20 mln |
|
FY Net Income |
| EUR 78.70 mln |
|
FY Operating Profit |
| EUR 165.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 7 "sell" or "strong sell"
The average consensus recommendation for the distillers & wineries peer group is "buy."
Wall Street's median 12-month price target for Remy Cointreau SA is €43.00, about 14.7% above its June 3 closing price of €37.50
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)