Key Takeaways:
Remy Cointreau SA reported 0.2% organic sales growth for fiscal 2026 and forecast a return to sustainable expansion, as Chief Executive Officer Franck Marilly outlined a plan to boost operating profit by about €100 million by 2028/29.
"The results validate our strategy to reduce the company's vulnerability to economic cycles," Marilly said. The maker of Remy Martin cognac and Cointreau liqueur has been navigating a sector-wide downturn driven by rising living costs and tariff pressures in its two biggest markets, the US and China.
Organic operating profit fell 11.5 percent to €165.4 million for the year ended March 31, beating the average analyst estimate for a 12.8 percent decline, based on a company-compiled consensus of 16 analysts. Management predicted a return to sustainable organic sales growth with a slight improvement in the current operating profit margin for fiscal 2027.
The three-year transformation plan, launched in April, aims to double sales in travel retail and emerging markets while cutting cognac prices to drive volume. Marilly said the strategy would make the company less sensitive to economic cycles. Management will propose an ordinary dividend of €0.75 per share in July.
The guidance signals management expects demand to stabilize after a prolonged downturn. Investors will watch the fiscal 2027 first-quarter trading update for early signs of volume recovery in the US and China markets.
This article is for informational purposes only and does not constitute investment advice.
