Rémy Cointreau reports 35% drop in annual profit amid tariff pressures

Thursday 04 June 2026 - 11:15

French spirits group Rémy Cointreau has reported a sharp decline in its annual net profit, falling by 35% for its 2025–2026 fiscal year, as the company faces increasing pressure from international tariffs and higher production costs.

The company attributed the downturn to additional import duties applied in key markets such as China and the United States, as well as unfavorable foreign exchange rates involving the U.S. dollar and Chinese yuan. Despite these challenges, Rémy Cointreau recorded revenue of approximately €935 million, down 5% compared to the previous year.

The group, known for its premium cognac and spirits brands, is also dealing with a complex economic environment in China, although it noted a stronger performance in the Asia-Pacific region during the final quarter of the year.

Chief Executive Officer Franck Marilly described the period as a “transition year,” highlighting progress in strategic areas such as the U.S. market and duty-free operations. The company also emphasized that its restructuring plan, launched earlier this year, aims to restore sustainable organic growth and improve operating margins in the coming fiscal year.

Despite the decline in profitability, the results slightly exceeded market expectations, leading to a rise in the company’s share price on the Paris stock exchange.

Looking ahead, Rémy Cointreau expects a gradual recovery in 2026–2027, supported by improved sales growth and operational efficiency.