Rémy Cointreau (EU:RCO), the French premium spirits producer, posted a 13.6% drop in first-half organic EBIT to €108.7 million, reflecting ongoing softness across several major markets. Despite the earnings pressure, the company delivered an adjusted net profit of €63.1 million, comfortably ahead of analyst forecasts of €57.5 million. Earlier in the year, organic revenue had fallen 4.2%, and management reiterated its full-year guidance.

For the full year, Rémy Cointreau still anticipates organic sales to be broadly flat to slightly lower, while organic EBIT is expected to contract by a low double-digit to mid-teen percentage. Currency movements are set to weigh on results, with an estimated €50–60 million hit to revenue and a €25–30 million reduction in EBIT.

The company expects the second half of fiscal 2026 to show little change overall, with implied organic EBIT growth of around 0.9% needed to meet the consensus expectation of a 12.8% decline for the year.

Performance varied across business segments. Liqueurs and spirits stood out, delivering a 9.9% increase in organic EBIT and a 0.9-percentage-point margin improvement to 16.3%. Cognac, the group’s flagship category, continued to struggle, with organic EBIT plunging 18.3% and sales down 4.3% organically.

Jefferies noted that net debt rose to 2.96× EBITDA from 1.9× a year earlier, reflecting the earnings downturn. The brokerage also highlighted persistent challenges in the U.S. and China, which continue to cloud visibility on when a recovery may take hold.

The earnings release comes as Rémy Cointreau undergoes a leadership transition, with a newly appointed CEO preparing to host the first post-results conference call.

Before the results, the company’s shares closed at €38.12 and were trading at roughly 20× projected 2026 earnings—above the consumer-staples sector average of 17×, according to Jefferies.

Jefferies analysts reiterated the contrasting performance across the portfolio: strong gains in liqueurs and spirits, with organic EBIT up 9.9% and margins rising to 16.3%, and sustained pressure in cognac, where organic EBIT declined 18.3% and sales fell 4.3%.

Despite the weakness in first-half profitability, Rémy Cointreau has maintained its outlook, expecting stable to slightly lower organic sales for the full year and a low double-digit to mid-teens decline in organic EBIT. Currency effects are still projected to reduce full-year revenue by up to €60 million and EBIT by as much as €30 million, while second-half trading is forecast to remain broadly flat, allowing for modest organic EBIT growth to meet consensus targets.

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