Remy Cointreau (EU:RCO) reported first-quarter sales ahead of market expectations, supported by stronger-than-anticipated demand for its cognac portfolio and solid performance across Asian markets outside China. Despite the earnings beat, the company’s shares slipped in early trading.
Organic sales increased 1.3% to €223.2 million during the quarter, outperforming the company-compiled analyst consensus, which had forecast growth of 0.2% and revenue of €218.8 million.
Commenting on the outlook, Jefferies analysts said: “Whilst the external environment is tough, there are some earlier signs of improvement.” They added, “Investors need proof that earnings have hit a floor and that current challenges are temporary. Strong inventory and cost discipline, combined with a focus on demand, create the foundation for stability.”
Despite the stronger-than-expected sales performance, Remy Cointreau shares were down around 1.7% in early trading in Paris at 07:37 GMT, suggesting investors remain cautious about the broader outlook for the premium spirits sector.
The French drinks group also reaffirmed its guidance for the full financial year, maintaining its existing targets despite ongoing macroeconomic uncertainty.
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