- Sales in three months to end of September fall by 11% to EUR268.8m (US$312.6m)
- First quarter’s +5.7% sales showing undone, top line for first half of fiscal 2026 declines 4.2% to EUR489.6m
Rémy Cointreau has reported a return to negative sales as subdued consumer demand and high inventories continued to weigh on performance across its key markets.
Despite positive signs in its previous quarter, the group’s sales in the three months to the end of September dropped by 11%, leading to a 4.2% fall in the first half of fiscal 2026 (to the end of March next year). As a result, the brand owner adjusted its full-year sales forecast from “mid-single-digit growth” to sit in the “stable-to-low-single-digit” range.
The group cited a “weaker-than-expected rebound in sales” in the US and a “deterioration of market conditions in China” as the main factors behind the adjusted guidance. Both markets had been expected to rebound more strongly after having both endured a difficult financial 2025.
Rémy Cointreau’s cognac division, which includes Rémy Martin and Louis XIII, remained under significant pressure, with sales down by 13.5% in Q2 and by 7.6% for the first half. The company said the performance reflected “a sharp downturn in the ‘Asia Pacific’ region”, particularly in China. Moreover, the ‘Europe, Middle East & Africa’ reporting region registered a “marked decline” due to “intense promotional pressures” and a cautious consumer. However, in South Africa and Nigeria, the launch last month of Rémy Martin VS showed promise.
Meanwhile, the ‘liqueurs & spirits’ division posted a 5.3% sales decrease in the second quarter, despite “solid performances” from Cointreau and The Botanist gin. The unit’s sales slipped back in the ‘Americas’ after a particularly strong opening three months to the fiscal year. For the first half, the division’s sales were up 4.1%.
While group sales in the ‘Americas’ rose 12.8% in the quarter, thanks to a “favourable basis of comparison”, ‘Asia Pacific’ and ‘EMEA’ were down by14.8% and 9.2% respectively, with Rémy Cointreau citing a later Mid-Autumn Festival and “lingering disruptions” in the two regions’ global travel retail channels.
Earlier this week, the head of cognac operations, Jean-Philippe Hecquet, left the group. His responsibilities will be assumed by the current executive director for Rémy Martin, Amaury Vinclet.
