Rémy Cointreau cuts outlook again as China and US weakness deepens

Rémy Cointreau has slashed its full-year sales and profit forecasts after a worse-than-expected second quarter. The Cognac maker continues to struggle in its key China and US markets, pushing back hopes of a recovery yet again.

After announcing a dismal set of second-quarter sales, Rémy Cointreau has pushed back further its hopes of a recovery. Following several reductions in expectations, in June the group predicted that the worst of the negative news was past.

But it has again cut its 2025/26 sales and profit expectations, blaming a worsening background in its China market and a weaker-than-expected rebound in sales in the US.

Those two markets account for 70% of the company’s Cognac business, by far its largest division.

Sales and profit outlook downgraded

Rémy Cointreau says it now expects organic sales growth for the full year 2025/2026 in the range between stable and low single digits, compared to its previous forecast for mid-single-digit percentage organic growth.

The group also now expects an organic decline in its annual current operating profit of between low double digits and the mid-teens, compared with a previous expectation for a mid-single-digit decline.

Second-quarter slump

Sales in the second quarter were worse than expected, falling 11% due to continuing difficult trading conditions in China, and the later-than-usual timing of China’s Mid-Autumn Festival, although the latter cannot have come as a surprise.

The spirits industry has been hit by the ending of the post-Covid revenge hospitality spree, the recent tariff war with the US and the effective ban on Cognac sales in China, but Rémy Cointreau seems to have managed less well than its peers in finding a signpost to recovery.

Cognac sales hit hard

Sales in the latest quarter were €268.8 million, a like-for-like decline of 11% compared with the July to September period in 2024 and well below the consensus forecast of a 9% fall.

The Cognac division’s sales fell 13.5%, reflecting mostly a sharp fall in China. In contrast, the Americas region posted a second consecutive quarter of strong growth, supported by a very favourable basis of comparisons and continued sequential improvements in depletions, the group said.

Leadership change and market reaction

Yesterday, it was announced that Jean-Philippe Hecquet, CEO of Rémy Martin and its Louis XIII category, has left the company. He is being replaced by the brand’s executive director, Amaury Vinclet.

Rémy Cointreau’s shares lost a further 8% to €43.2 in Paris. Three years ago, they stood at more than €200.

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