Rémy Cointreau plans recovery
Rémy Cointreau unveils three-year plan to boost operating profit by €100M amid downturn
Anonymous
Remy Cointreau reported fiscal 2025/26 results showing pressure from a sector downturn and tariffs in the US and China, with revenues down 5% to €935.3 million and organic operating profit falling 11.5% to €165.4 million, though the decline was described as near consensus. The company said it expects a return to sustainable organic sales growth and a slight improvement in the organic operating margin in 2026/27, after posting only marginal organic sales growth of 0.2% in the year. Under a three-year transformation plan launched in April, CEO Franck Marilly aims to boost operating profit by around €100 million by 2028/29 and to double the size of sales in travel retail and emerging markets. The turnaround is also intended to make earnings less sensitive to economic cycles, including through potential pricing changes to support volume growth. Remy said it is advancing efforts such as improving distribution efficiency, centralising procurement, reducing overhead costs, and launching growth projects like a Rémy Martin innovation for the US in 2027/28. Bloomberg Law additionally reported the company plans to propose an ordinary dividend of €0.75 per share in July.
Key Points
1
Remy Cointreau said the majority of its 5% revenue decline was driven by currency movements, not underlying demand alone.
2
In cognac, the group reported sales slipping 0.5% to €141.5m, with an 8% rise in volumes offset by a roughly similar fall in prices—highlighting the pricing/volume trade-off at the heart of its turnaround.
3
CEO Franck Marilly attributed the year’s performance to “tangible progress” including “stabilizing the business, preserving profitability, and improving cash generation,” and said “brands are regaining ground in the United States” while Travel Retail is “gradually recovering” with a goal to double within three years.
4
While reporting an 11.5% organic fall in operating profit to €165.4m, Remy Cointreau noted it was slightly better than expectations: Reuters cited a company-compiled consensus of 16 analysts expecting an average 12.8% decline.
5
ESM Magazine added market-context detail, saying Remy’s stock “tanked since 2023,” down more than 74%, and that the company scrapped 2030 sales targets due to the downturn in key markets.
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