Remy Cointreau Grows
Remy Cointreau reports Q1 sales rise, driven by Cognac; reaffirms growth targets
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Key Points
1
Partner Brands slumped nearly 48% organically after the end of Benelux distribution, highlighting how changes in distribution strategy can sharply affect organic performance.
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China posted a modest decline in cognac sales as expected, while the Rest of Asia continued to drive strong Cognac momentum in APAC.
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The 6.18 e-commerce festival contributed more than 12% growth in APAC, underscoring e-commerce as a significant driver for Remy Cointreau in the region.
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EMEA regions showed upside from the United Kingdom and South Africa, suggesting selective growth momentum despite broader regional headwinds.
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Liqueurs & Spirits fell 6.6% organically, with unfavourable shipment timing in the United States acting as a key drag on performance.
Rémy Cointreau posted first-quarter organic sales growth of 1.3%, with total revenues reaching €223.2 million — beating analyst expectations, according to Investing.com. The result was driven by a 7.7% surge in Cognac sales and strong momentum across Asia Pacific markets outside China.
Despite the top-line beat, shares dipped on the day. The company reaffirmed its fiscal 2026-27 targets, signaling confidence in a gradual return to growth after a difficult stretch for premium spirits makers.
Cognac and Asia Lead the Recovery Charge
Cognac was the clear standout, rising 7.7% organically in the quarter. Growth was concentrated in Asia Pacific, where markets outside China delivered strong results. The 6.18 e-commerce festival alone contributed more than 12% growth in the region, showing how digital sales channels are becoming a key engine for the brand, according to MarketScreener.
China posted a modest decline in Cognac sales, though that was widely expected. The rest of Asia more than made up the difference. The U.S. remained solid, though unfavourable shipment timing held back the Liqueurs & Spirits division, which fell 6.6% organically for the quarter.
Partner Brands Collapse as Distribution Deal Ends
The sharpest pain came from Partner Brands, which slumped nearly 48% organically. The drop came after Rémy Cointreau ended its Benelux distribution agreement. That one change wiped out nearly half the segment's sales on paper. It shows how organic growth figures can swing hard when distribution contracts change hands, according to MarketScreener.
The Americas also faced headwinds. Canada saw ongoing destocking — where retailers work through existing inventory before ordering more. Latin America struggled against a high comparison base from the same period last year. Together, these factors kept a lid on regional performance.
EMEA Finds Bright Spots in UK and South Africa
Europe, Middle East, and Africa delivered a mixed picture. The region faced broad headwinds, but the United Kingdom and South Africa stood out as pockets of genuine growth. Both markets added upside that offset weakness elsewhere in EMEA, according to MarketScreener.
Currency pressures and disruptions in U.S. distribution also weighed on reported results. But the company stressed that underlying demand trends remain intact, particularly for its premium Cognac brands.
Company Reaffirms Targets, Analysts Stay Bullish
Rémy Cointreau confirmed its full-year 2026-27 guidance. It expects gradual organic sales growth and a slight improvement in current operating margin. The company also expects financial leverage — debt relative to earnings — to stay below 3.5 times EBITDA, according to MarketScreener.
Analysts remain optimistic. The stock carries a Buy rating with a price target of around €52, reflecting confidence in a Cognac-led recovery and Asia-focused momentum. Shares trade below that target, which some see as an entry point for investors willing to wait for the recovery to fully play out.
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