Destocking drag in US hits Rémy Cointreau sales - results data

Sales in three months to end of June tumble by 15.6% to EUR217m (US$235.8m)
Fiscal 2025’s Q1 sees cognac sales decline 12.2%
Liqueurs & spirits division slumps by 20.4%
“No sign of a recovery in depletions yet” for the Americas reporting region

The promising end to fiscal 2024 for Rémy Cointreau has been undone by a tough three months to the end of June – Q1 of fiscal 2025 – for the group as sales fell by just over 15%.

A combination of a near-flat performance in the quarter prior and positive noises from cognac peer Moët Hennessy yesterday suggested a healthier start for Rémy Cointreau’s current financial year. However, any such hopes have been dashed by the latest results, in which the Paris-headquartered company admitted to seeing “no sign of a recovery” for its cognac volumes in the Americas.

Indeed, US destocking of spirits was referenced heavily in today’s results presentation, countering Moët Hennessy’s optimism.

As well as the continuing focus on reducing spirits inventory levels in the US, the Rémy Martin and Louis XIII brand owner blamed “intense” promotional activity in the cognac category in both North and Latin America during the quarter. At the same time, low consumer confidence in Asia Pacific, joined by tough comparables in Europe, Middle East & Africa, resulted in a decrease in cognac sales of just over 12%.

Liqueurs & spirits, meanwhile, suffered similarly, down 20%. The only real bright spots for the division came from the Cointreau liqueur, which was up by low single digits in the US, and The Botanist gin’s “positive trends year-on-year”.

Turning to the coming months and Rémy Cointreau described fiscal 2025 as a “year of transition”, with the current quarter – to the end of September – also expected to suffer before a forecast “finalisation of destocking” in the Americas.

“Despite the sharp fall in its 2023-24 results, Rémy Cointreau continues to exceed milestones set for its ten-year plan,” the company said. “2025-26 will mark a resumption of the trajectory and targets set for 2029-30 [of] high single-digit annual growth in sales … .

“Rémy Cointreau is determined to use tight cost controls … while continuing to make the investments needed for tomorrow’s growth.”