Rémy Cointreau targets €100m profit boost

Rémy Cointreau has unveiled a three-year recovery plan designed to return the business to sustainable growth and add €100 million to operating profit by 2028/29. The strategy comes as the French spirits group reported a third consecutive annual decline in profit, although recent sales trends suggest conditions may be starting to improve.

The announcement came alongside annual results showing group operating profit fell 11.5% on an organic basis to €165.4 million in the year to the end of March. The decline was less severe than analysts had forecast, with market expectations pointing to a 12.8% fall.

While this marks the third consecutive year of declining profit, the company reported its first annual sales growth since 2023 in April. Organic sales rose by 0.2%, offering an early sign that trading conditions may be stabilising.

Chief executive Franck Marilly said the plan would “create value across all our operations” while reducing the group’s exposure to wider economic cycles.

Focus on travel retail and emerging markets

The strategy builds on initiatives outlined earlier this year and includes ambitions to significantly expand the company’s presence in travel retail and emerging markets.

Rémy Cointreau is targeting a doubling of sales in both areas over the coming years and plans to launch a new Rémy Martin innovation in the United States during the first quarter of the 2027/28 financial year.

The group is also creating a dedicated emerging markets division as it seeks to broaden its geographic footprint beyond its traditional strongholds.

Marilly said the company remained committed to restoring growth despite continuing challenges facing the global spirits sector.

“Our determination remains unwavering,” he said.

Medium-term financial targets are expected to be announced alongside the group’s half-year results in November.

Cognac faces ongoing challenges

Like many premium spirits producers, Rémy Cointreau continues to contend with weaker consumer spending and geopolitical pressures in its key markets.

The group has been particularly exposed to tariff disputes affecting both the United States and China, its two largest markets.

For the full year, organic sales in the Cognac division fell by 0.5%. The result reflected a 7.8% increase in volumes that was offset by an 8.3% decline from price and mix effects.

Performance was supported by strong growth in the Americas, where the company said efforts to revitalise Rémy Martin VSOP helped boost demand. Higher-end expressions also performed more strongly during the year.

China remains difficult

China continues to present a more challenging backdrop.

Rémy Cointreau said its business in the country remained affected by a “complex market environment” and disruption in travel retail during the first half of the financial year.

Despite those headwinds, the company said Rémy Martin continued to gain market share and demonstrated resilience in the premium Cognac category.

Looking ahead, Rémy Cointreau expects a return to organic sales growth during the current financial year, alongside a modest improvement in operating profit margin as Marilly’s recovery plan begins to take effect.

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