Remy Cointreau on Thursday reported a slim positive outcome for annual revenue growth, recording 0.2% organic expansion for the year. The result marks the group's first positive annual sales outcome since 2023 and narrowly prevents a third consecutive yearly decline, although the performance fell just short of analyst expectations.
Despite the modest overall uptick, the company said sales of cognac - its core product - did not meet forecasts on an annual basis. At the same time, Remy flagged a stronger finish to the year, with cognac sales increasing by 15.5% in the fourth quarter.
The fourth-quarter uptick was driven in part by activity in China, where the company said it benefited from a "very favourable" comparison base from the prior year. Remy contrasted that strength in China with performance in the Americas, where it recorded a "slight decline" overall. The company also said targeted efforts to revive U.S. demand for a cheaper version of its Remy Martin cognac contributed to an improvement versus the third quarter.
Franck Marilly, who became chief executive in June, has made reversing the company's fortunes a priority. He has signalled that he is prepared to take measures to make the business less exposed to economic cycles - including the possibility of reducing cognac prices to stimulate volumes - and is due to set out his plan in greater detail in June.
Remy Cointreau noted a series of external pressures that have weighed on performance. The company cited soaring costs of living for consumers and tariff measures in two of its principal markets - the United States and China - as headwinds. More recently, it said the Iran war has disrupted sales of luxury drinks in airports and poses a further risk to demand while also threatening to push up input costs for producers, including bottles and grain.
The company’s results and comments underline the uneven recovery path for premium spirits: pockets of strong demand, particularly in China in the most recent quarter, coexist with persistent headwinds in other regions and growing cost pressures for producers.
Operational context
- Annual organic sales growth: 0.2%.
- Fourth-quarter cognac sales: +15.5%, supported by China and a favourable prior-year comparison.
- Americas: slight decline overall, with signs of improvement driven by a lower-priced Remy Martin offering in the U.S.
Outlook and management action
Marilly’s tenure, beginning in June, has focused on stabilising performance and reducing vulnerability to economic cycles. He has indicated potential price adjustments to grow volumes and will present a more detailed strategy in June.
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