LONDON (Reuters) -Remy Cointreau 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 and Pernod Ricard, which have broader portfolios and geographic reach.
($1 = 0.8518 euros)
(Reporting by Emma Rumney; Editing by Rachna Uppal)
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