Shares in Rémy Cointreau climbed more than 11% today (4 June) after the French group outlined a plan to revive sales.
The French group’s full-year operating profits also beat analyst forecasts, although one said expectations had been “low”.
The Rémy Martin brand owner, which derives a clear majority of its sales from Cognac, is aiming to boost its underlying operating profits by €100m over the next three financial years.
Among the company’s efforts will be “scaling up” its business in emerging markets and “accelerating” sales in travel retail.
The three-year plan also includes moves to try to “optimise” its A&P spending and “centralise” procurement.
Rémy Cointreau booked a 6.2% decline in Cognac sales to €573.6m ($667m) in the 12 months to the end of March. On an organic basis, sales dipped 0.5% to €608.4m amid a 7.8% rise in volumes.
However, the organic sales the company saw from Cognac rose 15.5% in the final three months of the year.
Group sales fell 5% to €935.6m but were up 0.2% organically. Sales were down 4.6% when compared to Rémy Cointreau’s 2019/20 financial year, the company said.
The Bruichladdich whisky owner provides figures for “current operating profit”, which the company said slid 11.5% to €165.4m.
Analysts at Bernstein said the consensus forecast was for a decline of 12.5%.
Rémy Cointreau said its group share of net profit fell 35.1% to €78.7m, or by 21.1% organically.
CEO Franck Marilly said: “In a persistently complex macroeconomic and geopolitical environment, we delivered a 2025-26 performance in line with our objectives, driven by tangible progress on our key priorities: stabilising the business, preserving profitability, and improving cash generation.”
In Rémy Cointreau’s 2026-27 financial year, the company said it “anticipates a return to sustainable organic sales growth, with momentum expected to strengthen progressively over the year”.
It added: “The group also anticipates a slight organic improvement in current operating margin.” That stood at 17.7% in 2025/26, which compared to 20.9% in the company’s 2019/20 financial year.
Shares in Rémy Cointreau stood at €41.80 at 14:52 CET, up 11.47%.
