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Food & drink

Rémy Cointreau cuts prediction for tariff impact after EU-US trade deal

Rémy Cointreau has cut its estimate of the impact of tariffs on profitability, after the US agreed a new 15% tariff rate for the European Union from 1 August, down from the 30% initially proposed.

Shares in the Paris-listed company rose initially but after an hour of trading were down 1.8% at €53.65, after the cognac maker reaffirmed its objective of "mid-single-digit" annual organic sales growth in the year to March 2026.

It said it expects this will supported by a strong "technical" rebound in the US market.

The estimated net impact of tariffs on current operating profit has been revised down to €30 million from €45 million.

Around €20 million of this total is expected in the US, reduced from €35 million previously, with a €10 million impact from China unchanged.

The group said it will continue to make "targeted and ambitious investments" in both the US and China to support recovery in demand.

Current operating profit is now expected to decline by a mid-single-digit percentage in the 25-26 fiscal year, compared with a decline that it previously predicted would be a "mid-to-high" single digits.

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