Rémy Cointreau has closed the first quarter of its 2026-2027 fiscal year with sales of €220.8 million, posting organic growth of 1.3% even as reported figures fell 5.7%.
The French spirits group says the quarter tracks its expected trajectory for the year and has reaffirmed its full-year guidance.
Currency Effects Mask Underlying Growth
The gap between the organic and reported figures comes down largely to currency. Rémy Cointreau points to a negative currency effect of 6.5%, driven primarily by the depreciation of the US dollar, the Chinese renminbi, and the Japanese yen against the euro. A positive perimeter effect of 0.5% partially offset this drag, but the euro's strength against the group's key trading currencies remains the dominant factor separating organic performance from what shows up on the balance sheet.
Cognac Carries the Quarter
The Cognac division was clearly the standout performer. Sales reached €147.8 million, up 7.7% organically, though reported figures dipped slightly by 0.8% due to currency headwinds. The company credits the improvement to a favorable comparison base from the prior year and a gradual recovery in US sales, one of Cognac's most important markets. Performance in China, meanwhile, held stable, though the group notes that consumer spending in the region remains cautious — a theme that recurs throughout its regional commentary.
By contrast, the Spirits & Liquor division struggled. Sales came in at €65.4 million, down 6.6% organically and 13.1% on a reported basis. Rémy Cointreau attributes the decline to softer demand across several markets combined with a tougher comparison base in certain categories. Partner Brands, a smaller contributor to the portfolio, saw an even steeper drop: €7.6 million in sales, down 17.3% organically and 18.2% as reported.
The Americas Rebound, Asia-Pacific Under Pressure
Geographically, the picture was similarly split. The Americas were the quarter's strongest region, generating €107.1 million in sales — a 10.4% organic increase — though published figures still showed a 0.9% decline once currency effects were factored in. The company links this rebound directly to recovering Cognac sales in the United States.
Europe, the Middle East, and Africa delivered a more modest result: €53 million in sales, up 1% organically but down 0.9% on a reported basis.
Asia-Pacific was the weak spot. Sales totaled €60.7 million, down 10% organically and 14% in reported terms — the steepest declines of any region. Rémy Cointreau identifies Asia-Pacific as the source of the greatest pressure on the group during the quarter, consistent with its broader caution around Chinese consumer demand.
Guidance Reaffirmed, Second Half Expected to Carry More Weight
Despite the uneven divisional and regional performance, Rémy Cointreau has confirmed its full-year targets: high single-digit organic sales growth and an organic improvement in current operating margin for fiscal year 2026-2027. The company expects the second half of the year to be more significant than the first, suggesting management sees the current quarter as an early, moderate step rather than a full reflection of annual momentum.
Why It Matters for the Wider Spirits Industry
Rémy Cointreau's results offer more than a single company's scorecard — they serve as a useful benchmark for category-specific demand across the international spirits market. The contrast between Cognac's growth and the decline in liqueurs and other alcoholic beverages is the kind of signal that distributors, retailers, and operators managing mixed portfolios often use to inform inventory planning and brand strategy.
The company's cautious tone on two of its most important markets is also notable. In the United States, it describes a gradual normalization in Cognac demand rather than a full-blown rebound. In China, consumer caution persists. Taken together, these dynamics help explain why Rémy Cointreau is holding firm on its annual targets even as performance varies sharply across its divisions and regions — a bet that the momentum building in Cognac and the Americas will be enough to carry the group through a year it expects to be back-half-loaded.
Source: Vinetur