Rémy Cointreau (ENXTPA:RCO) Profit Margin Drops to 9.8%, Undercutting Recovery Narratives

Rémy Cointreau (ENXTPA:RCO) just posted its latest H1 2026 results, delivering total revenue of €450.9 million and basic EPS of €0.56, with net income (excluding extra items) coming in at €29.2 million. Over the last several half-year periods, the company has seen revenue fall from €557.4 million in H2 2024 to €533.7 million in H1 2025, and now to €450.9 million. Basic EPS shifted from €1.41 to €1.81, before landing at €0.56. Margins compressed as profit declined, underscoring a challenging stretch for the spirits group.

See our full analysis for Rémy Cointreau.

Now, let's dive in and see how these numbers stack up when set against the dominant narratives in the market. Some perspectives may find support, while others could be put to the test.

See what the community is saying about Rémy Cointreau

Profit Margins Dip Below 10%

• Net profit margin decreased from 15% to 9.8% in the past year, marking a notable contraction in profitability beyond what is typical for the sector.
• Consensus narrative notes that, despite the margin slide, cost management and targeted marketing investments are expected to help stabilize future margins and support an eventual profit recovery.
  • Analysts expect profit margins to rebound from 12.3% today to 13.4% within three years, though the latest results point to ongoing pressure.
  • Macroeconomic challenges, including inflation and an unfavorable sales mix, challenge the consensus view that margins can quickly recover.
• With margins under close watch, investors seeking the full consensus narrative on margin pressures and recovery can read the analyst discussion right here. 📊 Read the full Rémy Cointreau Consensus Narrative.

Share Price Lags Analyst Target

• The current share price of €39.66 remains 12.9% below the fixed analyst price target of €45.55 and trades at a significant 36.6% discount to DCF fair value of €62.55.
• Analysts' consensus view points to perceived value upside for patient investors, yet cautions that the relatively close gap between analyst target and current price implies moderate near-term upside, especially since the company’s price-to-earnings ratio of 22.5x is higher than the European Beverage industry average.
  • Bulls would emphasize the large discount to estimated DCF fair value as a cushion, but the consensus is more balanced given recent earnings headwinds and only modest price target upside.
  • Critics highlight that absent a turnaround in net income or margin recovery, even the attractive valuation metrics might not be enough to drive significant outperformance near term.

Earnings Growth to Trail Market

• Rémy Cointreau is forecast to grow earnings at 12.02% per year and revenue at 4.5% per year, slightly below the French market’s expected 12.1% and 5.4% rates respectively.
• Consensus narrative suggests that while strategic investments and cost savings should support eventual growth, analyst models project the company will have to execute effectively in challenging regions like the U.S. and China to keep pace with wider industry expectations.
  • Planned reintroduction of targeted advertising and promotional investments is intended to boost sales, but the impact is not yet visible in the reported numbers.
  • Pressure on margins from rising costs and competition could limit the near-term pace of earnings growth despite multi-year forecasts.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Rémy Cointreau on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Rémy Cointreau research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Rémy Cointreau’s shrinking profit margins and lagging earnings growth signal inconsistent performance, which raises questions about its pace of recovery compared to sector peers.

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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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