Rémy Cointreau reports 15.9% decline in H1 sales, announces cost-cutting and investment plans

FRANCE – France-based liquor company Rémy Cointreau has reported a 15.9 percent decline in first-half sales for the 2024-25 fiscal year, amounting to €533.7 million (US$563 million).  

The company also experienced a 17.6 percent drop in operating profit to €147.3 million (US$155.02M) and a 24.2 percent reduction in net profit to €92 million (US$96.83M). 

Cognac sales, which account for 37 percent of the group’s revenue, fell by 17.9 percent organically and 13 percent on a reported basis, reaching €126.5 million  

(US$133.14).  

Liqueurs and spirits sales also declined, with a 3.3 percent organic drop and a 1.1 percent reduction on a reported basis, amounting to €30 million (US$31.6M), representing 16.5 percent of the company’s sales. 

Rémy Cointreau had previously issued a profit warning in October, adjusting its full-year sales outlook to a “double-digit” decline compared to earlier expectations of gradual recovery.  

For the 2024-25 fiscal year, the group now anticipates a 15-18 percent decline in sales, with no recovery in the Americas before the fourth quarter of 2024-25 at the earliest. 

The group also forecasts ongoing sluggish trends in the EMEA region and sequential sales deterioration in the APAC market during the second half of the year. 

To mitigate the impact of declining sales, Rémy Cointreau has implemented a €50 million (US$52.6M) cost-reduction plan.  

CEO Éric Vallat confirmed the company’s focus on cost control while preparing for future recovery.  

“Looking ahead, the second half will see continued efforts to rein in costs as part of our €50 million full-year savings plan. But it’s essential that we do not lose sight of our goals – and in that respect, the time has come to prepare for recovery,” Vallat stated. 

The company plans to reinvest in targeted marketing activities during the second half of the fiscal year to support peak activity in the U.S. and China. 

In addition to its cost-saving initiatives, Rémy Cointreau announced a minority investment in EcoSpirits through its venture capital arm, RC Ventures.  

While the financial details remain undisclosed, the move strengthens the existing operational relationship between Rémy Cointreau and EcoSpirits, which began in 2022. 

In May 2023, Pernod Ricard acquired a minority stake in EcoSpirits as part of a US$10m funding round led by New York-based investment group Closed Loop Partners.  

In November 2024, Maison Cointreau signed a multi-year partnership with INTACT for the use of the brand-new Pulse neutral alcohol, made from legumes.   

The transition to this innovative alcohol base is expected to reduce the company’s carbon footprint by 5 percent, cutting CO2 emissions by 1,200 tonnes annually. 

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