Rémy Cointreau sets revival plan after profit drop

Rémy Cointreau SA (RCOp) reported a drop in profitability for the year ended 31 March 2026, as uneven regional demand and cost pressures weighed on results. Current operating profit fell 11.5% on an organic basis to €165.4 million.

Group sales for the 2025-26 financial year were €935.3 million, representing a reported decline of 5%. On an organic basis, sales edged up 0.2%, indicating that underlying demand was broadly stable once currency and scope effects were stripped out.

Management linked the performance to mixed regional trends, with growth in the Americas offset by weaker Cognac consumption in China and Europe. Profitability was also constrained by customs duties, an unfavourable price mix and higher production costs.

Alongside the results on 4 June 2026, Chief Executive Franck Marilly set out a three-year revival plan aimed at improving the company’s earnings profile. The programme targets an additional €100 million in operating profit by the 2028/29 financial year.

A central element of the plan is to increase the company’s exposure to faster-growing channels and geographies. Rémy Cointreau (RCOp) said it intends to double the size of its sales in travel retail and in emerging markets over the period.

The group also plans to broaden its product offering in key markets. It announced that a new Rémy Martin innovation will be launched in the U.S. in the first quarter of its 2027/28 financial year, as part of efforts to support premiumisation and brand momentum.

For the 2026/27 fiscal year, Rémy Cointreau guided to a return to organic sales growth, following the largely flat performance on an organic basis in 2025-26. The company also expects a slight improvement in its current organic operating profit margin.

However, management warned that foreign-exchange movements are likely to weigh on reported figures in the coming year. The group forecast a negative currency impact on sales of roughly €15–20 million and on current operating profit of €5–8 million.

The outlook combines a more positive view on underlying demand with recognition that external financial factors, particularly exchange rates, may offset some of the operational progress at the reported level.

Investors responded positively to the new targets and guidance. Shares in Rémy Cointreau rose more than 13% in early trading on 4 June after the company presented its revival plan and profit ambitions.

At the same time, the group said it would halve its dividend. The decision aligns with the focus on a multi-year turnaround and profit expansion programme following the recent decline in operating earnings.