Rémy Cointreau said on Thursday it remains confident in its ability to return to growth in the 2025/26 fiscal year, after reporting a smaller-than-expected drop in first-half operating profit. The decline in sales in its key markets, China and the United States, was offset by cost-cutting measures.
The current operating profit (ROC) of the maker of Rémy Martin cognac and Cointreau liqueur stood at EUR108.7 million for the period, representing an organic decrease of 13.6%. Analysts had expected an average of EUR106.3 million, according to a company-provided consensus.
"This first half was challenging, but it also marks the beginning of a new era for Rémy Cointreau," said CEO Franck Marilly, who has held the position since June, in a statement.
"We remain confident in our ability to return to growth in the second half," he also stated.
Franck Marilly identified five "levers" to improve the group's performance, including adapting the group's organization, rebalancing commercial resources, and reassessing investments.
Sales have declined in recent years in the American and Chinese markets, which are crucial for Rémy Cointreau. The group has been forced to revise its forecasts downwards several times and to abandon its medium-term sales targets.
The entire spirits sector has suffered from a decline in sales observed after the Covid-19 pandemic, and more recently from tariffs on cognac imports to China and on European products entering the United States.
Rémy Cointreau, which generates 70% of its revenue from cognac, mainly in the United States and China, has been hit harder than its competitors.
The group's revenue showed an organic decline of 4.2% in the first half of its fiscal year, at EUR489.6 million, in line with expectations.
Rémy Cointreau also confirmed its annual targets, revised last month, including revenue growth between 0% and +4% and a decrease in ROC of between -11% and -15%.
(Written by Etienne Breban, with Dominique Vidalon, edited by Augustin Turpin)
