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Investing.com -- Shares of Rémy Cointreau rose more than 6% on Wednesday after reporting better-than-expected fiscal year 2025 results, easing concerns despite a steep drop in organic earnings.
Organic EBIT fell 30.5%, outperforming consensus expectations of a 31.7% decline. Reported EBIT totaled €217 million, ahead of the €213.9 million consensus.
Adjusted net income came in at €121.2 million, narrowly missing the consensus of €122.8 million.
Earnings per share reached €2.36, just under the consensus of €2.39. The company previously reported an 18% decline in organic revenue.
A dividend of €1.50 per share was declared, comprising €1 in cash and €0.50 in either cash or shares.
Looking to fiscal year 2026, the company expects mid-single-digit organic sales growth, driven by a rebound in U.S. demand beginning in the first quarter.
It anticipates organic growth to resume in the second half, as recovery gains traction in China and the broader Asia-Pacific and Americas regions.
Excluding trade tariffs, management projects organic EBIT growth in the high-single-digit to low-double-digit range.
However, the outlook remains clouded by geopolitical uncertainty. The company warned that tariffs could have a gross EBIT impact of up to €100 million in 2025 and 2026, €60 million from China and €40 million from the U.S.
It believes it can offset up to 35% of that exposure, resulting in a potential net EBIT impact of €65 million. In that scenario, EBIT could post a mid- to high-teen percentage loss.
Currency movements are also expected to weigh on results. A strong euro against the U.S. dollar and Chinese yuan is projected to reduce EBIT by €10 million to €15 million.
Jefferies analysts noted that the wide range of 2026 guidance reflects tariff risk and anticipate consensus estimates will trend toward their lower forecast of €176.7 million in EBIT, versus a current consensus of €211.8 million. Still, Jefferies sees room for upward revisions if tariffs are eased.
Jefferies said the elimination of 2030 medium-term targets was largely expected and suggested that current share prices may already reflect part of the tariff risk. However, analysts warned that the full impact is likely not factored into most sell-side models.
With the Chinese Ministry of Commerce expected to announce potential trade measures on July 5, Jefferies anticipates further adjustments to consensus forecasts, which could pressure the stock in the coming weeks.