Rémy Cointreau slashes full-year outlook
French firm Rémy Cointreau has lowered its 2025-26 sales forecast following a double-digit drop for its Cognac division in the second quarter (Q2) of the year.
Its total Q2 sales fell by 11% on an organic basis to €268.8 million (US$311.9m). The firm said this reflected ‘adverse timing effects in a persistently challenging economic environment’.
Total sales for the first half (H1) of the year were €489.6m (US$568.2m), down by 4.2%. Its disappointing Q2 results eliminated the more positive figures from Q1, when sales grew by 5.7%.
H1 sales in the Americas rose by 12.8%, driven by a ‘very favourable basis of comparison and a further sequential improvement in depletions’.
However, sales in Asia Pacific (APAC) fell by 14.8%. Rémy Cointreau attributed this to ‘tougher market conditions’ in China, ‘unfavourable calendar effects’ linked to the timing of this year’s Mid-Autumn Festival, and lingering disruptions in travel retail.
Sales in Europe, the Middle East and Africa (EMEA) were also down by 9.2%, impacted mainly by ‘promotional pressures and sluggish overall consumption’.
Sales by division
The firm’s Cognac division suffered a 13.5% decline in Q2, equating to a 7.6% fall for H1. This was primarily due to a ‘sharp downturn’ in APAC, for the reasons given prior.
The division saw a second consecutive quarter of ‘strong growth’ in the Americas, while EMEA also suffered a marked decline.
The firm cited the launch of Rémy Martin VS in South Africa and Nigeria in September as showing ‘encouraging’ initial results.
Liqueurs and spirits fell by 5.3% in Q2, however the division’s H1 sales grew by 4.1%.
Cointreau liqueur and The Botanist Gin delivered a ‘solid’ performance in the Americas, with the firm pointing to recent marketing campaigns and the launch of Cointreau’s first ready-to-serve Spritz.
In EMEA, Metaxa and Mount Gay had ‘robust momentum’, while Cointreau gained market share.
APAC reported strong sales growth, particularly for Bruichladdich.
The firm’s partner brands division plunged by 28.7%, but no explanation was given, nor did it list which brands the arm includes.
Future forecast
As a result of its disappointing performance, Rémy Cointreau lowered its forecast for the full year to range between stable and low single-digit growth. It previously anticipated mid single-digit growth.
The company also anticipates an organic decline in current operating profit of between low double digits and mid-teens. It previously predicted a mid single-digit decline.
It said it intends to support recovery by maintaining investment in China and the US.
