Rémy Cointreau Raises Profit Outlook as U.S. Tariff Impact Lessens

French spirits maker Rémy Cointreau has raised its full-year 2025/26 profit forecast, pointing to a smaller-than-expected hit from recently imposed U.S. tariffs. The group, known globally for its Rémy Martin cognac, said the 15% duties introduced last month on European Union imports would now trim around €20 million ($23.41 million) from its current operating profit, compared with an earlier projection of €35 million.

The company confirmed that its exposure to Chinese tariffs remains unchanged at €10 million, leaving the overall tariff burden at €30 million, down significantly from the €45 million previously estimated.

This revision gives the group some breathing room after a challenging period of falling demand in its two largest markets, the United States and China, which have weighed heavily on sales in recent years and forced repeated profit downgrades as well as the scrapping of medium-term growth targets.

With the reduced tariff impact, Rémy Cointreau now expects its annual operating profit to decline by a mid-single-digit percentage, an improvement from the mid-to-high single-digit drop it had forecast earlier. Executives had already indicated in June that the worst of the downturn might be over, and Friday’s announcement strengthens that outlook.

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The company, which generates roughly 70% of its revenue from cognac, remains more vulnerable than diversified competitors to trade disputes and broader economic slowdowns.

Despite that, the more positive forecast suggests resilience in the face of market pressures.
Rival Pernod Ricard, producer of Jameson whiskey and Chivas Regal scotch, also reported a more favorable tariff outlook this week. It now expects the annualized cost of U.S. and Chinese tariffs to stand at €80 million ($93.66 million), down sharply from the €200 million it had previously projected.

The revisions from both companies indicate that while tariffs continue to pose a challenge for European spirits makers, the actual financial strain may not be as severe as once feared. For Rémy Cointreau, the reduced burden offers a glimmer of stability as it seeks to rebuild momentum in its core markets and reassure investors after a turbulent stretch.