Rémy Cointreau (EPA:) saw its shares rise following the release of its half-year EBIT results, which showed a smaller decline than expected. The company attributed this positive outcome to favorable currency effects and a reduction in marketing expenses.
As of 5:09 am (10:09 GMT), Rémy Cointreau’s stock was trading 4.9% higher at €60.20.
The company’s half-year EBIT for fiscal 2025 surpassed analyst forecasts, with a decrease of 17.6% compared to the projected 20.6% drop. Analysts at Morgan Stanley (NYSE:) noted a 10% beat on EBIT due to this unexpected performance.
Despite facing challenges in the U.S. and Chinese cognac markets, Rémy Cointreau’s cost-saving measures and currency gains helped offset declining sales and support its financials in the short term.
However, the company revised its full-year guidance, anticipating a 15-18% decline in organic sales growth and a compression in EBIT margins to 21-22%. This adjustment is expected to lead to further downward revisions in profit estimates, as highlighted by Morgan Stanley.
While acknowledging the headwinds and structural challenges ahead, Morgan Stanley remains cautious about Rémy Cointreau’s medium-term performance, anticipating continued underperformance.