Remy Cointreau revises outlook after tariff deal, now faces US duties and euro weight
Adjusted operating profit outlook for 2025‑2026 narrowed to mid‑high‑single digits
Projected profit decline: Mid‑high‑single‑digit range, down from mid‑high‑teens forecast
Chinese levy impact reduced: €10 m hit this year, previously estimated at €40 m
US tariff impact heightened: €35 m expected, up from earlier €25 m estimate
Currency effect on sales: Negative impact now between €50–60 m, previously €30–35 m
Currency effect on profit: Adjusted operating profit now €15–20 m, up from earlier €10–15 m
Underlying factors shaping the revised outlook
EU‑China agreement: European brandy exporters now raise prices in China to avoid anti‑dumping duties, ending temporary measures that were costing French cognac makers €50 m per month
Strong euro valuation: Euro has climbed more than 13 % against the dollar since the start of the year, weighing on European companies when they convert foreign sales back into euros
Sales growth forecast: Mid‑single‑digit growth expected for 2025‑2026 when stripping out currency changes, linked to rebound from low comparison base in the United States
Quarterly performance snapshot
Sales growth April–June: 1.8 % rise to €220.8 bn; 5.7 % increase when stripping out exchange rate fluctuations and other changes to the business
US sales trend: Rise from a low base
Asia sales trend: Edge lower due to Chinese levies
Europe, Middle East, Africa trend: Fell due to heightened competition and sluggish demand
Market reaction
Remy Cointreau shares: Jumped around 4 % as trading commenced in Paris
