Rémy Cointreau: Annual Sales Nearly Stable, but Operating Income Expected to Decline
Rémy Cointreau concluded the 2025-26 fiscal year with a revenue of 935.3 million euros, showing an almost stable organic growth (+0.2%), in line with its forecasts. Despite this seemingly controlled performance, the group anticipates a decrease in operating income (COP) ranging from low double-digits to mid-teens in organic terms, raising questions about underlying profitability beyond volumes.
Stabilized Sales Masking Two Opposing Realities
Rémy Cointreau ended the fiscal year with nearly flat organic sales growth, but this stability results from a disparate trajectory. The first half saw an organic decline of 4.2%, pulled down by a 7.6% contraction in Cognac while Liqueurs & Spirits grew by 4.1% in the first semester. In stark contrast, the second half rebounded: Q3 posted an organic growth of 2.8% and Q4 accelerated by 8.9%. The Cognac division, which represents 61% of total revenue (573.6 million euros), finished the year with a slight organic decline of 0.5%, but Q4 saw a significant increase of 15.5% in organic terms, driven by the Asia-Pacific region and particularly China. Liqueurs & Spirits progressed by 2.8% over the full year, with almost total stability in Q4 (−0.1%).
Cognac Rebounds at Year-End, Amidst a Tense Geopolitical Context
The Cognac rebound in Q4 resulted from a combination of temporary factors. In Asia-Pacific, China benefited from a very favorable comparison base, positive calendar effects related to the Chinese New Year, and sustained resilience despite a 'tense' market environment. In the Americas, Cognac sales slightly declined in the fourth quarter, due to a high comparison base in the United States and an unfavorable shift in Canada. However, the group noted a further sequential improvement in depletion volumes, attributed to the initial effects of Rémy Martin VSOP's relaunch initiatives. In terms of currency, the group suffered a negative impact of 5.2% on the exchange rate over the year, mainly due to the dollar and renminbi. The release also anticipates a currency impact of 25 to 30 million euros on the 2026 operating income.
Profitability Decline Expected Despite Stable Sales
Rémy Cointreau confirms an expected organic decline in current operating income ranging from low double digits to mid-teens. This contraction occurs while the group continues substantial investments in China and the United States. China continues to face challenging market conditions, while EMEA is affected by competitive pressures on Cognac in a context of relatively moderate consumption. The group also expects a negative currency impact of 25 to 30 million euros on current operating income, and estimates the net impact of additional tariffs at 25 million euros, with 5 million in China and 20 million in the United States. The anticipated decline in current operating income highlights the pressure on profitability from exchange rate effects, additional tariffs, and sustained investments in China and the United States. Nevertheless, the group reaffirms its annual target for current operating income for 2025-26.
