Rémy Cointreau (EU:RCO) reported stronger-than-expected sales for the second quarter of its 2026-27 financial year, supported by growth in its cognac business across Asia-Pacific, particularly China, while its liqueurs and spirits division continued to face pressure from distribution changes in the United States.
The French spirits producer recorded organic sales growth of 4.2% for the quarter ended September 2026, exceeding analysts’ expectations of 3.6%. Revenue reached €287.7 million, compared with the consensus forecast of €280.8 million.
The cognac division recorded organic growth of 12.4%, exceeding market expectations, while liqueurs and spirits revenue declined 7.4% on an organic basis.
Rémy Cointreau maintained its full-year outlook for a return to sustainable organic sales growth and reaffirmed its objective of achieving a slight improvement in current operating margin.
Second-Quarter Revenue Exceeds Analyst Forecasts
Rémy Cointreau generated revenue of €287.7 million during the second quarter, approximately €6.9 million above the analyst consensus.
Organic revenue growth reached 4.2%, compared with the 3.6% increase anticipated by the market.
For the first six months of the financial year, revenue totalled €510.9 million, compared with €489.6 million in the corresponding period a year earlier.
This represented reported revenue growth of 4.4%, while organic growth reached 2.9%.
The difference between reported and organic growth reflects factors such as currency movements and changes in the reporting perimeter.
The first-half performance was supported by higher cognac sales, although trading conditions remained uneven across the company’s product categories and geographic markets.
Cognac Sales Rise 12.4% on Asian Demand
Rémy Cointreau’s cognac division reported organic revenue growth of 12.4% in the second quarter, ahead of analysts’ expectations of 8.9%.
The performance was primarily supported by increased shipments to China ahead of the Mid-Autumn Festival.
The company also reported continued sales momentum across other Asia-Pacific markets.
The acceleration in shipments contributed to the division’s quarterly performance and helped offset weaker results elsewhere in the business.
However, the timing of shipments ahead of a major seasonal event is relevant when assessing the sustainability of quarterly growth.
Rémy Cointreau continues to monitor demand conditions across its principal cognac markets as it progresses through the second half of the financial year.
Liqueurs and Spirits Revenue Declines 7.4%
The liqueurs and spirits division reported a 7.4% organic revenue decline during the second quarter.
The result was weaker than the analyst consensus, which had anticipated a contraction of 4.7%.
Rémy Cointreau attributed the decline partly to inventory reductions by US distributors following changes to its distribution arrangements.
These destocking activities affected shipments during the quarter and contributed to the difference between the division’s performance and market expectations.
The company did not specify when the inventory adjustment process is expected to conclude.
The contrasting results between cognac and liqueurs and spirits highlight differences in trading conditions across the group’s businesses.
Tariff Impact Forecast Reduced to €5 Million
Rémy Cointreau revised its estimate of the impact of tariffs on current operating profit for the 2026-27 financial year.
The company now expects a negative impact of approximately €5 million, compared with its previous estimate of €20 million.
The €15 million reduction reflects changes in US import tariffs on European products and refunds relating to the previous financial year.
US tariffs on European imports declined from 15% to 10%, reducing the expected cost of importing the company’s products into the American market.
Rémy Cointreau also recognised €6.4 million in tariff refunds relating to the 2025-26 financial year during the first half.
The company intends to reinvest the approximately €15 million in tariff-related savings into initiatives designed to support future growth.
As a result, the lower estimated tariff burden does not translate directly into an equivalent improvement in the company’s operating profit outlook.
Currency Forecast Revised to Positive Contribution
Rémy Cointreau also updated its expectations for the financial impact of currency movements.
The company now anticipates a positive currency effect of approximately €15 million on full-year revenue.
This compares with its previous forecast of a negative impact of €15 million.
The revised estimate therefore represents a €30 million change in the expected revenue effect of foreign exchange movements.
For current operating profit, Rémy Cointreau now expects a positive currency contribution of between €3 million and €5 million.
Previously, the company had anticipated a negative impact of between €5 million and €8 million.
The revisions reflect updated exchange rate assumptions and their expected effects on the translation of international revenue and earnings.
Operating Margin Objective Maintained
Despite changes to its tariff and currency assumptions, Rémy Cointreau maintained its objective of achieving a slight organic improvement in current operating margin during the 2026-27 financial year.
The company stated:
“The Group’s objective of achieving a slight organic improvement in Current Operating Margin is thus unchanged.”
The margin objective remains in place even though the company plans to reinvest approximately €15 million in tariff savings to support growth.
The decision indicates that management is prioritising expenditure on commercial development while maintaining its underlying profitability target.
Actual margin performance will depend on sales volumes, product mix, operating expenditure and market conditions during the remainder of the financial year.
Full-Year Organic Sales Growth Guidance Reaffirmed
Rémy Cointreau confirmed its guidance for a return to sustainable organic revenue growth during the financial year ending 31 March 2027.
The company expects sales momentum to improve progressively as the year advances.
Its outlook reflects the contribution from cognac sales, alongside continuing challenges in liqueurs and spirits.
The group has not provided a specific numerical organic sales growth target in the reported update.
Management’s expectations remain dependent on demand across major markets, distribution activity and the timing of customer orders.
The company also maintained its objective of achieving a slight organic improvement in current operating margin.
€250 Million Hybrid Bond Issue Completed
On 30 September 2026, Rémy Cointreau completed its inaugural hybrid bond issuance, raising €250 million.
The securities carry a fixed coupon of 6.75%.
The company stated that the entire amount will be recognised as equity for accounting purposes.
Hybrid bonds combine characteristics of debt and equity financing, with their accounting treatment depending on the contractual terms.
The transaction forms part of the company’s financing arrangements as it manages its capital structure and financial commitments.
Rémy Cointreau did not specify the intended allocation of the proceeds in the information provided.
Leverage Target Remains Below 3.5 Times EBITDA
Rémy Cointreau reaffirmed its objective of maintaining leverage below 3.5 times net debt to EBITDA at 31 March 2027.
The ratio measures net borrowing relative to earnings before interest, tax, depreciation and amortisation.
The target provides a measure of the company’s intended financial position at the end of the current financial year.
The €250 million hybrid bond issuance is also relevant to the group’s capital structure, given its planned classification as equity.
The company did not provide an updated net debt figure or current leverage ratio in the reported trading update.
Outlook for the Remainder of 2026-27
Rémy Cointreau enters the second half of its financial year with organic sales growth ahead of expectations in the September quarter.
Cognac demand in Asia-Pacific, particularly China, supported the performance, while inventory adjustments in the United States continued to affect the liqueurs and spirits division.
The company has reduced its expected tariff-related profit impact and revised its currency assumptions to reflect a positive contribution to revenue and operating profit.
It continues to target sustainable organic sales growth, a slight improvement in current operating margin and leverage below 3.5 times net debt to EBITDA by the end of March 2027.
The pace of sales growth, developments in US distribution and demand in Asian markets will remain important factors in the company’s performance during the second half.
More About Rémy Cointreau
Rémy Cointreau is a French spirits group specialising in premium alcoholic beverages, including cognac, liqueurs and other spirits.
Its portfolio includes internationally distributed brands such as Rémy Martin, Cointreau and Mount Gay.
The company operates across Europe, the Americas and Asia-Pacific, supplying products through distribution networks serving retail, hospitality and other markets.
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