Rémy Cointreau Q1 Sales Grow 5.7% Amid Tariff Reductions, Profit Outlook Raised

Rémy Cointreau reported its first quarter of sales growth since early 2023, with organic sales rising 5.7%, surpassing analyst expectations. The growth was driven primarily by a low comparison base in the United States, where sales rose sharply, while sales in China continued to decline albeit at a limited rate. The company raised its full-year profit outlook, expecting a mid- to high-single-digit decline in operating profit, an improvement from the previously anticipated mid- to high-teen decline. This revision reflects a reduced impact from Chinese tariffs, now estimated at €10 million down from €40 million, but an increased expected impact from U.S. tariffs, projected at €35 million based on the likelihood of a 30% tariff rate under President Trump's threatened measures. Despite ongoing challenges from high U.S. inflation and subdued Chinese consumer sentiment, the easing of Chinese tariffs following a minimum price agreement has improved the outlook. Shares of Rémy Cointreau rose following the positive sales report and updated guidance, signaling cautious optimism about the company’s recovery under new leadership.