Cognac maker Remy Cointreau tops sales forecasts as US improves

By Dominique Vidalon and Emma Rumney

PARIS/LONDON, Jan 29 (Reuters) - Remy Cointreau's RCOP.PA third quarter sales returned to growth and beat market forecasts on Thursday, driven by improving sales in the key U.S. market and of its main product, cognac.

Remy, which makes around 70% of its sales from cognac mostly in the U.S. and China, said it enjoyed "solid sales" in the Americas region.

This helped offset weakness in China, which, on top of still challenging conditions in demand for high-end spirits, faced a negative calendar effect tied to the late timing of the Chinese New Year.

The maker of Remy Martin cognac and Cointreau liqueur has suffered persistent quarterly declines since 2023 amid a sector-wide downturn and tariffs.

New CEO Franck Marilly has promised a return to growth in the second half of its current financial year and pledged to revive volumes even if it means lowering prices.

On Thursday, Remy said it had employed an external consultant to help diagnose problems and offer solutions, which it plans to deploy later in 2026.

The company's sales rose 2.8% on an organic basis to 245.8 million euros ($294.47 million) in the third quarter, compared with analysts' expectations of a 1.7% rise in a company-compiled consensus.

Sales of cognac were up 3.2% in the quarter at 150.2 million euros, versus a rise of 1.4% expected by analysts. Remy kept its full-year sales guidance unchanged, forecasting stable to low single digit growth.

Analysts, however, remained cautious, pointing to weak performance at rival cognac makers like luxury goods group LVMH LVMH.PA and the fact that Remy's U.S. sales were boosted by an easy base of comparison after steep declines last year.

In a note, JP Morgan analysts warned of continued potential risks in Remy's current and coming financial year, including pricing pressures.

($1 = 0.8347 euros)