Rémy Cointreau FY sales drop by double digits
French firm Rémy Cointreau saw organic sales fall by 18% in its 2024-25 financial year (FY), totalling €984.6 million (US$1.12 billion).
The performance was ‘in line with expectations’, with the group previously predicting full-year sales would drop by up to 18%.
For the final three months of the year (Q4), organic sales fell by 19%.
The Americas fell by 20.2% for FY, with the firm citing ‘continued destocking in the first nine months of the year, in a market hit by slower consumption’. It added that the figure included a ‘steep recovery’ in Q4.
Sales in Asia-Pacific (APAC) were down by 18.2%, which Rémy Cointreau attributed to ‘complex market conditions in China’.
Meanwhile, in Europe, the Middle East and Africa (EMEA), sales fell by 13.8%.
Rémy Cointreau confirmed its outlook and expects to resume its trajectory for 2029-30. Its goals include high single-digit annual growth in sales and a gradual organic improvement in current operating profit margin.
Chaos for Cognac
As in its previous results, the sales fall was mostly driven by Cognac, which totalled €611.8m (US$695.4m). This represented a 21.9% fall compared with 2023-24.
Q4 saw the portfolio’s performance slump even further, declining by 32.8%. The firm noted that excluding ‘the impact of Chinese duty-free disruptions and calendar effects related to the Chinese New Year’, the decline was 23.7%.
This fall was led by a sales decline in APAC, in particular China. Despite the disappointing performance, the firm said Rémy Martin continued to gain market share and saw a ‘slight’ increase in depletions during New Year.
The US experienced a ‘sharp rebound’, however, with Rémy Martin VSOP in particular seeing ‘positive effects’ from the firm’s action plan.
In EMEA, however, the Cognac portfolio suffered a sharp decline, which the firm said reflected its decision to ‘optimise distributor inventory levels in order to move into the 2025-26 fiscal year under the best possible conditions’.
In the results, Rémy Cointreau acknowledged that the Chinese Ministry of Commerce (MOFCOM)’s investigation has been extended. It restated that if tariffs are confirmed, an action plan will be triggered from 2025-26.
The firm’s chief financial officer previously said he would raise Cognac prices in China to mitigate duties.
It also addressed the US tariffs, which are currently under a 90-day suspension. The firm did not comment on how it expects tariffs to affect its sales.
The rest of the portfolio
Its other portfolios also suffered, with Liqueurs & Spirits falling by 9.1%, group brands by 17.3% and partner brands by 26.7%.
In Q4, however, Liqueurs & Spirits grew by 16.1%, with the Americas noted as a strong point. Brands succeeding in the region included Cointreau, St Rémy, Mount Gay and The Botanist.
EMEA saw a ‘moderate’ decline, again owing to the optimisation of distributor inventory levels. APAC, however, experienced strong sales growth, with ‘excellent showings’ in China for Cointreau and Bruichladdich, and in Japan for Bruichladdich.
