Rémy Cointreau has cut its sales forecast for the 2025-26 fiscal year, citing worsening market conditions in China and a slower-than-expected recovery in US sales.
Announcing its first-half results today (30 October), the French spirits giant said it now expects organic sales growth to sit in the “stable and low single-digits” range, compared to its previous forecast of “mid-single-digit growth”.
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The company also said it expects an organic decline in current operating profit between the “low double digits and mid-teens”, versus an earlier projection for a “mid-single-digit” fall.
Despite the downgraded outlook, Rémy said it “intends to support the recovery by maintaining sustained investments in China and the United States”.
In the six months to the end of September, the Mount Gay brand owner posted sales of €489.6m ($568.5m), dipping 4.2% on an organic basis compared to its 2024-25 fiscal year.
Reported sales in the period fell 8.3%, reflecting a negative currency impact of 4.1%, largely tied to movements in the US dollar and Chinese renminbi, Rémy said.
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By GlobalDataOrganic sales in its second quarter dropped 11% to €281.9m, reflecting “adverse timing effects in a persistently challenging economic environment”, the company said.
Regional performance in Remy’s second quarter was mixed. Sales in the company’s Americas market were up 12.8%, supported by a “very favourable basis of comparison and a further sequential improvement in depletions”.
APAC sales, however, fell 14.8%, reflecting “tougher” conditions in China, the later timing of the Mid-Autumn Festival, and continued disruptions in travel retail.
The EMEA region also saw sales decline 9.2%, impacted by “fierce promotional pressures” and slow consumption.
Rémy saw second-quarter organic sales of Cognac fall 13.5% to €178.2m, dragged mainly by APAC. Cognac accounts for the majority of the group’s sales
Sales from the separate Liqueurs and Spirits division decreased 5.3% organically at €100m.
The first six months saw Cognac sales drop 7.6% on an organic basis to €300m, and dropping 17.4% organically compared to the first half of its fiscal 2019-2020 year.
Organic sales in its Liqueurs and Spirits division were up 4.1% on its 2024-25 fiscal year, reaching €182.7m, and growing 43.7% compared to the first half of 2019-20.
