Latest news with #Remy
Reuters
3 days ago
- Business
- Reuters
Remy Cointreau sales rise, profit view lifted on China tariff deal
LONDON, July 25 (Reuters) - French spirits maker Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday after damaging Chinese tariffs were reduced. Sales have slumped in Remy's key U.S. and Chinese markets in recent years, forcing the company into multiple guidance downgrades and to scrap medium-term sales targets. But it said in June that the worst was over. The maker of Remy Martin cognac and Cointreau liqueur said its first-quarter organic sales rose 5.7% year-on-year, beating analyst forecasts and returning to growth soon after new CEO Franck Marilly took the helm in June. Shares rose over 5.5%, even as Chief Financial Officer Luca Marotta warned that Remy's sales would decline in the second quarter before rebounding later in the year, and that trends in the U.S. remained below expectations. "It was a positive quarter, so I'm very eight negative (quarters)," Marotta told analysts on a call. Remy said the quarterly rise was driven by a low base of comparison a year ago in the United States. Sales in China continued to fall, but Remy described the decline as "limited". "After two years of declining growth, I think it's the beginning of good news," said Charles de Riedmatten, fund manager at Myria AM, a Remy investor. Questions remained about underlying demand for cognac and how the new CEO, who has a background in luxury goods but not spirits, will perform, he said. High U.S. inflation and downbeat Chinese consumers had already knocked Remy's business even before tariffs - actual or threatened - emerged in both markets. In July, the cognac industry agreed a deal with China that would ease steep duties imposed since October 2024. As a result, Remy now expects the annual blow from tariffs to fall to 45 million euros from 65 million euros previously, driven by a reduction in the impact from Chinese duties from 40 million euros to 10 million euros. However, it hiked the hit expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros, to reflect U.S. President Donald Trump's threat to impose a 30% tariff on EU imports from August 1. Remy expects its full-year operating profit to decline by mid- to high-single digits percentage, an improvement on the mid- to high-teen decline it previously anticipated. The company makes around 70% of its sales from cognac, mostly in the U.S. and China, leaving it more exposed to tariffs and economic downturns than more diversified peers. ($1 = 0.8518 euros)
Reuters
4 days ago
- Business
- Reuters
Remy Cointreau lifts profit view as sales return to growth
LONDON, July 25 (Reuters) - French spirits maker Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday as tariff threats receded. Sales have slumped in Remy's key U.S. and Chinese markets in recent years, forcing the company into multiple guidance downgrades and to scrap medium-term sales targets. But it said in June that the worst was over. The maker of Remy Martin cognac and Cointreau liqueur said its first-quarter organic sales rose 5.7% year-on-year, beating analyst forecasts and returning to growth soon after new CEO Franck Marilly took the helm in June. The company's shares rose over 4% on the news. Remy said the quarterly rise was driven by a low base of comparison a year ago in the United States. Sales in China continued to fall, but Remy described the decline as "limited". "After two years of declining growth, I think it's the beginning of good news," said Charles de Riedmatten, fund manager at Myria AM, a Remy investor. He added, however, that it was hard to assess the quality of growth Remy described as technical. Questions remain about underlying demand for cognac and how the new CEO, who has a background in luxury goods but not spirits, will perform, he continued. High U.S. inflation and downbeat Chinese consumers had already knocked Remy's business even before tariffs - actual or threatened - emerged in both markets. In July, the cognac industry agreed a deal with China that would ease steep duties imposed since October 2024. As a result, Remy now expects the annual blow from tariffs to fall to 45 million euros from 65 million euros previously, driven by a reduction in the impact from Chinese duties from 40 million euros to 10 million euros. However, it hiked the hit expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros, to reflect U.S. President Donald Trump's threat to impose a 30% tariff on EU imports from August 1. Remy expects its full-year operating profit to decline by mid- to high-single digits percentage, an improvement on the mid- to high-teen decline it previously anticipated. The company makes around 70% of its sales from cognac, mostly in the U.S. and China, leaving it more exposed to tariffs and economic downturns than more diversified peers. ($1 = 0.8518 euros)
Reuters
4 days ago
- Business
- Reuters
Remy Cointreau reports rise in first-quarter sales, raises guidance
LONDON, July 25 (Reuters) - French spirits maker Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday as tariff threats receded. Sales have spiralled in Remy's key U.S. and Chinese markets in recent years, forcing the company into multiple guidance downgrades and to scrap ambitious medium-term sales targets. But it said in June that the worst was over. The maker of Remy Martin cognac and Cointreau liqueur said its first-quarter organic sales rose 5.7% year-on-year, well ahead of the 2.3% expected by analysts, returning to growth soon after new CEO Franck Marilly took the helm in May. Remy said the quarterly rise was driven by a low base of comparison versus a year ago in the United States. Sales in China, meanwhile, continued to fall but Remy described the decline as "limited". High U.S. inflation and gloomy consumer sentiment in China had already knocked Remy's business even before actual, or threatened, tariffs emerged in both markets. China imposed steep duties affecting imports of cognac in October 2024. These were reduced as part of a deal between the industry and authorities in July, easing Remy's pain. As a result, Remy now expects the annual blow from Chinese duties to be lowered to 10 million euros from 40 million euros projected previously. But it has hiked the hit expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros. The revised U.S. forecast is based on the assumption that European exports to the U.S. would face a tariff rate of 30% - the level U.S. President Donald Trump has threatened to impose on August 1 unless ongoing talks result in a better deal. It previously assumed a 20% levy. Remy also now expects its full-year operating profit to decline by mid- to high-single digits, an improvement on the mid- to high-teen decline it had previously anticipated. The company makes around 70% of its sales from cognac, mostly in the U.S. and China, leaving it more exposed to tariffs and economic downturns than more diversified peers. Remy's cognac sales grew 1.3% organically, also surpassing expectations, despite tough market conditions in China and a "sharp drop" in sales in Europe, Middle East and Africa. ($1 = 0.8518 euros)
Reuters
4 days ago
- Business
- Reuters
Remy Cointreau's first-quarter sales rise 5.7%, beating forecast
LONDON, July 25 (Reuters) - Remy Cointreau ( opens new tab reported its first quarter of sales growth since early 2023 and raised its full-year profit guidance on Friday as tariff threats receded, kindling some optimism around the embattled French spirits maker. The maker of Remy Martin cognac and Cointreau liqueur said its first-quarter organic sales rose 5.7%, well ahead of the 2.3% expected by analysts. Sales have spiralled in its key U.S. and Chinese markets in recent years. Remy said the rise was driven by a low base of comparison versus a year ago in the United States. Sales in China, meanwhile, continued to fall but Remy described the decline as "limited". High U.S. inflation and gloomy consumer sentiment in China had already knocked Remy's business even before actual or threatened tariffs emerged in both markets. China imposed steep duties affecting imports of cognac in October 2024. These were reduced as part of a deal between the industry and authorities in July, easing Remy's pain. The company said it now expects tariffs to deliver an overall impact of 45 million euros ($52.83 million) over the full year, versus 65 million euros previously. While it reduced the amount related to Chinese duties from 40 million euros to 10 million euros, it hiked the blow expected from U.S. tariffs on European goods by 10 million euros, to 35 million euros. The revised U.S. forecast is based on the assumption that European exports to the U.S. would face a tariff rate of 30% - the level U.S. President Donald Trump has threatened to impose on August 1 unless ongoing talks result in a better deal. It previously assumed a 20% levy. Remy also now expects its full-year operating profit to decline by mid- to high-single digits, an improvement on the mid- to high-teen decline it had previously anticipated. The company makes around 70% of its sales from cognac, mostly in the U.S. and China, leaving it more exposed to tariffs and economic downturns than peers like Diageo (DGE.L), opens new tab and Pernod Ricard ( opens new tab, which have broader portfolios and geographic reach. ($1 = 0.8518 euros)
Reuters
4 days ago
- Business
- Reuters
Cognac maker Remy Cointreau first-quarter sales up 5.7%, beating forecast
LONDON, July 25 (Reuters) - French cognac company Remy Cointreau ( opens new tab reported a 5.7% rise in first-quarter organic sales on Friday, well ahead of analyst expectations of 2.3% growth. The result marked the first quarter of sales growth since early 2023 for the maker of Remy Martin cognac and Cointreau liqueur, which has been battling with spiralling sales in its key U.S. and Chinese markets. Remy said the rise was driven by a low base of comparison versus a year ago in the United States. The company has also faced tariffs from both the U.S. and China, with steep duties imposed in China since October 2024. These were reduced as part of a deal between the industry and authorities in July, easing Remy's pain. Remy said that, as a result, it now expects its full-year operating profit to decline by mid- to high-single digits, an improvement on the mid- to high-teen decline it had previously anticipated.
