Remy Cointreau edges up on return to growth, guidance hike

Shares in Remy Cointreau RCOP.PA edges up about 2%, paring earlier gains of more than 4%, after it beat Q1 sales expectations and raised its FY guidance

The sales of the cognac and liqueur maker show first quarter of growth since early 2023, rising 5.7% organically to 220.8 million euros ($259.44 million) against consensus expectation of +2.3%

Remy now sees FY current operating profit decline at mid-to-high-single-digits decline against mid-to-high-teens previously

"The worst case on China tariffs has been averted, earnings appear to be bottoming,", Jefferies says

Remy reduces expected tariff impact to 45 million euros from 65 million euros previously

Another guidance upgrade is likely if U.S. tariffs are diluted down, Jefferies adds

The stock is among best performers on France's SBF 120 index .SBF120

($1 = 0.8511 euros)