Rémy Cointreau (ENXTPA:RCO) Is Down 12.3% After Lowering 2025-26 Sales and Profit Outlook

• Earlier this week, Rémy Cointreau revised its full-year 2025-26 financial guidance, citing deteriorating market conditions in China and a slower-than-expected sales rebound in the U.S., now forecasting organic sales growth between stable and low single digits with a larger decline in current operating profit than previously anticipated.
• This outlook revision highlights the company’s ongoing reliance on key international markets and continued exposure to adverse currency effects, despite generally stronger performance in the Americas.
• We’ll examine how the lowered profit guidance amid weaker demand in China and the U.S. could reshape Rémy Cointreau’s investment case.

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Rémy Cointreau Investment Narrative Recap

For investors in Rémy Cointreau, the investment case often centers on confidence in the company’s ability to drive a sales rebound in the U.S. and sustain demand in China, the two most critical markets for its premium spirits. The recent profit guidance cut points directly to these regions as ongoing short-term challenges, putting pressure on the main recovery catalyst while spotlighting market risks that may continue to weigh on revenue and earnings for the foreseeable future.

One recent announcement relevant to these ongoing risks was the reduction in dividend payments set in July 2025, which reflects management’s response to lower profit expectations and the need to conserve cash. This aligns with cautious measures aimed at protecting the company’s financial stability during a period of weak demand in China and the U.S., reinforcing the importance of prudent cash and risk management as operating conditions shift.

However, with competitive pricing and slowed Cognac market recovery in the U.S., investors should be aware that...

Read the full narrative on Rémy Cointreau (it's free!)

Rémy Cointreau's outlook anticipates €1.1 billion in revenue and €146.2 million in earnings by 2028. This scenario is based on 3.4% annual revenue growth and a €25 million increase in earnings from the current €121.2 million.

Uncover how Rémy Cointreau's forecasts yield a €52.84 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community estimates for Rémy Cointreau's fair value range widely from €23.54 to €55.80 across three analyses. In light of the reduced sales outlook in key markets, these differences reflect how much expectations for future recovery can shape opinions about the company's performance.

Explore 3 other fair value estimates on Rémy Cointreau - why the stock might be worth 46% less than the current price!

Build Your Own Rémy Cointreau Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rémy Cointreau research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Rémy Cointreau research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rémy Cointreau's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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