Rémy Cointreau axes 2029-30 sales goals
French firm Rémy Cointreau has withdrawn its sales targets for 2029-30 due to uncertainties over US-China tariffs and a lack of recovery in the States.
In an update on the group’s consolidated 2024-25 annual results, Rémy Cointreau announced the withdrawal of its 2029-30 financial goals due to several factors.
The group said this was due to ‘geopolitical uncertainties’ over US-China tariff policies, ‘continued lack of macroeconomic visibility’ and the absence of recovery in the US based on improving underlying trends.
Furthermore, Rémy Cointreau said this decision was also made after the business appointed Franck Marilly to the role of CEO.
Marilly will take on the new position from 25 June 2025, taking over from Éric Vallat, who resigned in April.
As such, Rémy Cointreau said Marilly would set “his own strategic roadmap while remaining aligned with the value strategy implemented by the group for decades”.
Announced in June 2020, the group’s targets for 2029-30 included the aim of delivering a gross margin of 72% and a current operating margin of 33% by 2030.
As part of its latest financial update, Rémy Cointreau confirmed that its full-year sales declined by 18% to €984.6 million (US$1.12 billion).
Cognac sales plunged by 21.9%, while liqueurs and spirits were down by 9.6%.
All regions were in decline: the Americas posted a 20.2% full-year drop, Asia Pacific fell by 18.2%, and Europe, the Middle East and Africa decreased by 13.8%.
Objectives for the year ahead
For 2025-26, Rémy Cointreau expects organic sales to return to mid-single-digit growth, led primarily by a ‘strong technical rebound’ in US sales during the first quarter.
For Asia Pacific (in particular China) and the Americas region, the group hopes to be back in growth by the second half of the year.
Excluding increases in customs duties in China and US, Rémy Cointreau estimates its current operating profit (COP) to grow in the high-single-digit to low-double-digit range.
The French firm has also predicted its worst-case scenario if duties rise. It estimates its COP could have a maximum gross impact of €60m (US$68.3m) in China and €40m (US$45.5m) in the US in 2026-26.
However, 35% of this €100m (US$113.8m) impact could be offset by the group’s action plans, bringing the maximum net impact to €65m (€40m in China and €25m in the US).
Taking into consideration any potential duty increases, the company expects COP to decline in the mid-teen to high-teen range.
These valuations are based on additional anti-dumping duties of 38.1% on Cognac imports to China, implemented as part of the country’s investigation into European brandy imports.
The estimation also takes into account customs duties of 20% on imports from the European Union and 10% on imports from the UK and Barbados to the US.
The group has only factored in a 10% duty on US imports for April to June 2025 because of the 90-day pause.
China’s Ministry of Commerce (MOFCOM) originally launched an investigation into brandy imports from the European Union on 5 January 2024. The investigation is due to end in July this year.
Related news
Franck Marilly named Rémy Cointreau CEO
