(Reuters) -Remy Cointreau noted its objective objective (ROC) for 2025/26, the group of spirits citing a smaller impact on American customs duties after the conclusion of an agreement between the United States and the European Union (EU) on Friday and the European Union (EU).

Washington and Brussels concluded a trade agreement last month setting customs duties on American imports from the EU at 15% from August 1.

Rémy Cointreau indicated that the overall net impact of American customs duties on its rock is estimated at 30 million euros, against 45 million previously.

The early impact on the group’s rock in the United States is lowered to 20 million euros, against 35 million previously, while the estimated impact in China remains unchanged, at 10 million euros.

Consequently, Rémy Cointreau says to anticipate an organic decrease in rock around 5% (“Mid-Single Digit”) in 2025/26, against an initially planned drop from around 4% to 9% (“Mid-to-High Single Digit”).

American imports from the EU were initially threatened with customs duties of 30% before the conclusion of the trade agreement between Americans and Europeans.

This update of estimates by Rémy Cointreau on Friday “represents the second increase in the company since the price uncertainty has diminished,” observe Jefferies analysts in a note. Rémy Cointreau had already raised his profit forecast for the whole year in July, while customs threats were upset.

Activity in the United States remains a “concern”

Sales have dropped in recent years on the main markets of Rémy Cointreau, China and the United States, which forced the company to review its forecasts downwards and to abandon its medium-term sales objectives in June.

According to Midcap analysts, despite updating Rémy Cointreau’s estimates on Friday, the development of activity in the United States remains a concern.

“In June the cognac volumes exported to the US were again behind at -8.8%”, they observe, stressing that since the start of the calendar year, “cognac exports to the United States increased by 2.2% in volume thanks to the technical effect of advance purchases upstream of customs duties”.

For Jefferies, who remains convinced that cognac will experience a medium -term recovery – but whose moment is difficult to determine -, “extreme risks diminish and the Cognac activity of Rémy seems to have reached its lowest level”.

At 8:46 am, the title of Rémy Cointreau ceded 1.56% to 53.80 euros.

(Written by Etienne Breban, with Dominique Vidalon, edited by Augustin Turpin)

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