Latest news with #RemyMartin
Daily Mail
2 days ago
- Business
- Daily Mail
French brandy and liqueur-maker Remy Cointreau axes sales targets as Trump tariffs bite
The maker of Remy Martin cognac and Cointreau liqueur has become the latest global drinks company to abandon its sales targets in the face of the trade war declared by US president Donald Trump. Paris-listed Remy Cointreau, which has teamed up with The White Lotus actress Aubrey Plaza to promote one of its brands, said that the 2030 goals that it had set out in 2020 were no longer realistic. It blamed tariffs as well as persistently slow US sales. However, the company's shares climbed 4 per cent as it said the worst has passed in terms of sluggish sales. 'We believe this difficult phase is now behind us,' said chief executive Eric Vallat. Its rivals, including Diageo and Pernod Ricard, have also withdrawn their sales targets as the sector endures a sharp slowdown from previous boom years for pricey liquors. But Remy, which makes 70 per cent of its sales from cognac, mostly in the US and China, has suffered more than peers as drinkers in both nations ditch the brandy and both governments have levied tariffs.
Fashion Network
2 days ago
- Business
- Fashion Network
Remy Cointreau withdraws its mid-term goals and posts lower annual profits
French spirits group Remy Cointreau reported a smaller-than-expected 30.5% drop in annual organic operating profit, withdrew its mid-term goals, and said sales would return to mid-to-single-digit growth during the next financial year. The maker of Remy Martin cognac and Cointreau liqueur said on Wednesday that the lower profits reflected weak sales in its key markets of China and the United States, where the group also faces tariff threats. Remy Cointreau, which last week named luxury goods veteran Franck Marilly as its new chief executive, said it had decided to withdraw its objectives for 2029–30, citing continued uncertainty around tariffs. Its group operating profit fell 30.5% on an organic basis to 217 million euros ($246.7 million) for the full year ended March 31, 2025. This compares with analysts' expectations of a 31.7% fall in a company-compiled consensus of 15 analysts. ($1 = 0.8796 euros)
Fashion Network
2 days ago
- Business
- Fashion Network
Remy Cointreau withdraws its mid-term goals and posts lower annual profits
French spirits group Remy Cointreau reported a smaller-than-expected 30.5% drop in annual organic operating profit, withdrew its mid-term goals, and said sales would return to mid-to-single-digit growth during the next financial year. The maker of Remy Martin cognac and Cointreau liqueur said on Wednesday that the lower profits reflected weak sales in its key markets of China and the United States, where the group also faces tariff threats. Remy Cointreau, which last week named luxury goods veteran Franck Marilly as its new chief executive, said it had decided to withdraw its objectives for 2029–30, citing continued uncertainty around tariffs. Its group operating profit fell 30.5% on an organic basis to 217 million euros ($246.7 million) for the full year ended March 31, 2025. This compares with analysts' expectations of a 31.7% fall in a company-compiled consensus of 15 analysts. ($1 = 0.8796 euros) © Thomson Reuters 2025 All rights reserved.
Yahoo
01-05-2025
- Business
- Yahoo
Remy Cointreau says US cognac sales are rebounding, China weak
By Dominique Vidalon and Emma Rumney PARIS/LONDON (Reuters) -French spirits group Remy Cointreau on Wednesday flagged a "steep recovery" in the critical U.S. market that has dragged on performance for over a year, sending its shares up more than 5% even as its fourth-quarter sales missed forecasts. The maker of Remy Martin cognac and Cointreau liqueur has been grappling with problems in both the U.S. and China, which account for most of its cognac sales, sending its shares downwards in recent years. Remy also faces steep tariffs in China as part of a Beijing-Brussels trade dispute, which has also seen duty-free sales of cognac in China halted. In the U.S., tariffs affecting its cognac are currently on pause. Sales in the U.S. had spiralled due to high inflation and interest rates, and Remy said in January that the fourth quarter was the earliest possible timing for a U.S. recovery. However, Americas cognac sales, driven by the U.S., had "rebounded sharply" in the period, Remy said, citing a "very favourable" comparison base. Cognac sales in the region declined significantly last year. An action plan for the cheapest version of Remy Martin cognac - the most popular in the U.S. - was having a positive impact, it continued. There were emerging reasons to be optimistic on Remy, said James Sym, partner at Goodhart Partners LLP, which manages a fund that holds Remy stock, adding he was moving towards building his position. "I feel that we're getting to the bottom of a very cheap share," he said. Remy finance chief Luca Marotta told investors on a call that the company's plans to mitigate U.S. tariffs did not, to his knowledge, include shifting any operations to the United States. Its plans instead included changes to how it purchases eau-de-vie brandy or builds inventories, he continued. The U.S. news contrasted with a sharper-than-expected fourth quarter fall in overall sales and cognac sales, which account for 70% of Remy's business. The period may mark the last full quarter for CEO Eric Vallat, whose resignation was announced earlier in April, effective this summer. The company said it still expects to resume progress towards targeted high single-digit sales growth from next year, though Marotta said there would be more clarity in the coming months on whether guidance changes are needed. Rivals Diageo and Pernod have both either cut or withdrawn longer term sales targets deemed overly ambitious by some investors. ($1 = 0.8791 euros) Sign in to access your portfolio
Reuters
30-04-2025
- Business
- Reuters
Remy Cointreau's US sales back to growth in Q4, China stays weak
PARIS, April 30 (Reuters) - French spirits group Remy Cointreau ( opens new tab reported a steeper-than-expected drop in fourth quarter revenue, as cognac sales in China remained weak while they returned to growth in the United States. The maker of Remy Martin cognac and Cointreau liqueur, which is implementing a cost cutting plan of over 50 million euros ($56.88 million) to protect margins, stuck to its guidance for a current operating profit margin of between 21% and 22% of sales on an organic basis for the full year 2024/25. Remy Cointreau, whose CEO Eric Vallat has said he will leave the company this summer, is facing weak demand and the threat of tariffs in its key U.S. and Chinese markets. Group sales reached 196.8 million euros in the three months to March 31, marking an organic drop of 19%, compared with average analysts' expectations of a 17.9% decline in a company-compiled consensus. For the 2024/2025 full year sales fell 18%, in line with the company's guidance for a decline of close to 18% and analysts' expectations for a 17.9% decline. Sales at the Remy Martin cognac division , which makes the bulk of revenue, slumped 32.8% in the quarter, compared with analysts' expectations for a 29.9% decline. In China, the sales decline reflected a very high year-ago comparison basis and tough market conditions as well as disruptions to Chinese duty-free sales and the negative impact of the timing of the Chinese New year. In the United States, where high interest rates and inflation have hit consumption, sales growth in the fourth quarter was driven by favorable comparables, a continued sequential improvement in the sales of wholesalers to retailers. Remy makes 70% of its sales from cognac, the vast majority of which is sold in those two nations. This has also left it more exposed to the tariffs than some competitors with a broader geographic reach or product portfolio. Remy reiterated that 2024-25 will be a year of transition and that 2025-26 will mark a resumption of the trajectory set for 2029-30, which entails high single-digit annual growth in sales on average and on an organic basis and a gradual organic improvement in current operating profit margin.
