Remy Cointreau shares surged sharply, climbing 10.9% to €41.60, after the group released full-year FY2025/26 results that exceeded market expectations on operating profit and adjusted earnings. The jump in demand for the stock was notable given its steep decline of more than 74% since 2023.
On a reported basis, current operating profit reached €165.4 million, and the operating margin was 17.7% for the fiscal year ended March 31. Those figures reflect an 11.5% organic decline for the year, yet they still topped the analyst consensus of €163.0 million and beat the margin forecast of 17.4%.
Alongside the published results, Remy Cointreau said it expects a return to organic sales growth and a slight improvement in current organic operating profit margin for 2026/27. Management also presented a multi-year recovery plan that targets a €100 million increase in operating profit by 2028/29, giving investors a tangible metric against which to judge progress.
Management comment
"In a macroeconomic and geopolitical environment that remains complex, we delivered a performance... our brands are regaining ground in the United States, Rémy Martin is strengthening its leadership and market share in China, and our Travel Retail business is gradually regaining momentum and aims to double in size within three years."
Analysts responded favourably. JPMorgan’s Celine Pannuti praised the results and indicated she expects market expectations to move up in the mid-to-high single-digit percentage range. Goldman Sachs analyst Olivier Nicolaï also commended the company’s performance.
The price move appears driven by company-specific developments rather than broader risk appetite. European equities provided a mildly supportive backdrop, with the pan-European STOXX 600 edging higher and the CAC 40 gaining 0.3% amid easing Middle East tensions after an Israel-Lebanon ceasefire renewal. By contrast, U.S. markets were weaker on the day: the S&P 500 was down 0.7%, the Dow Jones fell 1.2%, and the NASDAQ declined 0.9%.
Market participants pointed to a combination of factors that prompted the aggressive re-rating: a better-than-feared earnings print, a clear multi-year recovery roadmap, and constructive commentary from sell-side analysts. For a stock that has lost over 74% of its value since 2023 following prolonged sales declines and repeated cuts to forecasts, the results and outlook represented a potential inflection point.
Those dynamics pushed shares toward their highest level since February and back above the 200-day moving average, technical developments that can attract additional investor interest if sustained.
Clear summary
Remy Cointreau reported FY2025/26 operating profit of €165.4 million and a 17.7% operating margin, beating consensus estimates. Management forecast a return to organic sales growth and slight margin improvement in 2026/27 and set a target to lift operating profit by €100 million by 2028/29. Those elements, together with positive analyst reaction, drove a significant share-price rebound after steep losses since 2023.
Key points
- The group delivered current operating profit of €165.4 million and a reported operating margin of 17.7%, exceeding consensus estimates.
- Management outlined expectations for a return to organic sales growth and a modest margin improvement for 2026/27, and a plan targeting a €100 million operating profit increase by 2028/29.
- Analyst commentary was constructive, and the stock recovery occurred despite mixed broader market moves, indicating company-specific drivers.
Risks and uncertainties
- Remy Cointreau continues to operate in a sector-wide downturn amid rising living costs, which can weigh on consumer discretionary and luxury spending.
- The company faces ongoing headwinds from tariffs in key markets, a factor that could sustain cost pressure and complicate margin recovery in the alcoholic beverages and luxury goods sectors.
- Macro and geopolitical complexity remain a cited uncertainty, which could affect international sales momentum, including in Travel Retail and key geographic markets mentioned by management.
Investors assessing the company should weigh the better-than-expected results and the credibility of the recovery roadmap against the persistent macro and sector-specific challenges that the firm has flagged.