Shares in unloved Remy Cointreau (EPA:RCO) rallied after the struggling cognac and brandy maker’s FY26 results proved better than feared. Investors’ spirits were also lifted as CEO Franck Marilly unveiled a bold three-year turnaround plan for the French spirits group.
| Share price: €41.12 (+9.7%) | PE 26: 22.7x |
| Market cap: €1.96bn | Yield 26: 3.2% |
Marilly’s recovery strategy targets a €100 million increase in operating profits over the next three years. The plan also aims to return Remy Cointreau to sustainable organic sales growth in FY27.
The Paris-based company’s drinks portfolio includes the Remy Martin and Louis XIII cognac brands. It also spans Greek spirit Metaxa, French brandy St-Remy and Mount Gay rum.
Depressed earnings
Sales fell 5% to €935.3 million in the year to March 2026, driven mainly by a currency drag from the US dollar and Chinese renminbi. But Remy did delivered its first positive annual organic growth since 2023, admittedly modest at 0.2%.
An 11.5% drop in organic operating profit to €165.4 million proved slightly better than the €163 million consensus estimate. Furthermore, Remy Cointreau’s adjusted earnings per share of €1.71 topped the €1.62 consensus and the €1.64 Jefferies was calling for.
RC Forward
Marilly unveiled his ambitious ‘RC Forward’ transformation strategy, a three-year plan intended to turn Remy Cointreau’s fortunes around.
‘In this year of transition,’ said Marilly, ‘we have won several key battles: our brands are regaining ground in the United States, Remy Martin is strengthening its leadership and market share in China, and our travel retail business is gradually recovering, with the aim of doubling in size within three years.’
Remy Cointreau shares have lost 75% of their value over the past five years. Expectations heading into the results were subdued, which explains today’s share price jump.
The drinks group has wrestled with declining sales and profits for years as consumers rein in spending on spirits due to cost of living pressures. US and Chinese tariffs have stirred up headwinds, while sales of cognac in the Middle Kingdom have been hard hit by the spirits sector downturn.
We welcome Marilly’s ambitious recovery strategy, but it still feels early in the turnaround at this indebted business. We’ll be monitoring progress against guidance for a return to organic sales growth and reduced leverage in FY27.
Read the press release here: https://www.remy-cointreau.com/en/finance/
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