Rémy Cointreau, a spirits group, is affected by sluggish sales in the United States and sluggishness in China. On Thursday, November 28, it announced profits down 18.6% in the first half.
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– The spirits group Rémy Cointreau announced a turnover of 533 million euros
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The spirits group Rémy Cointreau, affected by sluggish sales in the United States and sluggishness in China, announced profits on Thursday down 18.6% in the first half of its staggered financial year. Its net profit for the period from April to September amounted to 92 million euros, for a turnover of 533 million eurosdown 16.2% due to drops in prices and especially volumes.
“In a complex economic and geopolitical context, Rémy Cointreau was able to preserve its margin in the first half thanks to rigorous cost management and a now more agile organization”explained in a press release Eric Vallat, the group’s general manager, who plans a cost reduction plan of 50 million euros.
Also read: Pernod Ricard and Rémy Cointreau plunge on the stock market, China attacks the EU on cognac
Very dependent on the success of cognac
Rémy Cointreau announced at the end of October the lowering of its annual forecasts. More precisely, it anticipates for its staggered 2024-25 financial year an organic drop in its turnover of between -15% and -18%, and a current operating margin of between 21% and 22%, on an organic basis. -he said on Thursday. The company’s portfolio is very dependent on the success of cognac (nearly two thirds of its turnover) and the Chinese demand for this high-end drink.
However, this market is contracting and Beijing’s desire to impose additional customs duties on wine spirits, due to a trade conflict with the European Union, is darkening the horizon. “The group has taken note of the provisional decision of Mofcom (Chinese Ministry of Commerce, Editor’s note) to apply additional customs duties of 38.1% on cognac imports into China, from October 11, 2024. If these provisional rights were confirmed, the impact would be marginal for the 2024-25 financial year and the group would activate its action plan to mitigate the effects from 2025-26 »he said on Thursday.
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