France's Remy Cointreau H1 sales rise, helped by Cognac growth in Asia

Overview

• France spirits maker's H1 2026-27 sales rose 2.9% organically

• Cognac sales grew strongly in Q2, while Liqueurs & Spirits declined

• Company completed €250 mln hybrid bond issue to boost financial flexibility

Outlook

• Remy Cointreau expects sustainable organic sales growth for full-year 2026-27

• Company now sees tariff impact on operating profit at €5 mln, down from €20 mln

• Remy Cointreau maintains target of slight organic improvement in current operating margin

Result Drivers

• COGNAC GROWTH IN ASIA - Strong Cognac sales in APAC, especially China, driven by accelerated shipments ahead of Mid-Autumn Festival

• DESTOCKING IN AMERICAS - Sales in Americas declined due to high comparison base and destocking after US distribution changes, though underlying depletions improved

• SUBDUED DEMAND IN EUROPE - EMEA results impacted by weak consumer demand and heavy promotional activity

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and 7 "sell" or "strong sell"

• The average consensus recommendation for the distillers & wineries peer group is "buy."

• Wall Street's median 12-month price target for Remy Cointreau SA is €46.00, about 9.3% below its October 27 closing price of €50.70

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 24 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)