Remy Cointreau has raised its guidance for full-year profits after seeing sales grow in its first quarter and avoiding a worst-case scenario for tariffs in China.
The Cointreau liqueur maker said sales in the three months of its financial year grew by 5.7% – well ahead of analysts’ expectations of a 2.4% increase. Sales growth was driven by its lower-margin liqueurs and spirits – which climbed by 17.3% – with cognac sales climbing by just 1.3%.
After the cognac industry agreed a deal with China to end uncertainty over tariffs earlier this month, Rémy Cointreau said it now expected full-year operating profit to decline by mid to high-single digits, rather than the mid to-high-teen decline it previously guided for.
The French spirits group now expects a €45m hit from tariffs, compared with the €65m hit it had predicted previously.
US president Donald Trump’s threats to impose 30% tariffs on EU imports from 1 August would increase an expected hit from US tariffs from €10m to €35m annually, Rémy said.
However, the impact of Chinese duties was are now expected to be just €10m annually, it added.
The set of results is Rémy Cointreau’s first since the arrival of new CEO Franck Marilly in May.
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