Rémy Cointreau (RMC) H1 24/25 earnings summary

Executive summary

• H1 2024-25 sales declined 15.9% organically to €533.7 million, with net profit down 18.6% to €92.0 million and EPS at €1.80.

• Current operating profit fell 17.6% organically to €147.3 million, but COP margin improved by 1.0 point to 27.6% as reported, supported by strict cost controls and over €50 million in cost savings.

• Americas and APAC regions saw significant sales declines, with destocking and challenging conditions in China and Southeast Asia.

• Strategic focus remains on long-term brand equity, innovation, and preparing for recovery in 2025-2026.

Financial highlights

• Gross margin was 72.5%, up 0.3 points year-over-year, but down 1.4 points organically; net margin at 17.2% (down 0.5 points); EPS at €1.80 (down 19.4%).

• Free cash flow improved to -€7.6 million from -€99.0 million, aided by working capital and capex optimization.

• Net financial debt at €644.3 million, net debt/EBITDA at 1.90, and net gearing at 34%.

• Dividend of €2.00 per share paid, with 907,322 new shares issued and €41.0 million paid in cash.

Outlook and guidance

• Full-year 2024-25 organic sales expected to decline 15–18%, with COP margin guidance at 21–22% (organic, ex-FX).

• Americas not expected to return to growth before Q4 2024-25; APAC to see sequential sales deterioration in H2; EMEA to remain subdued.

• FX expected to impact sales by -€4m to -€8m and COP by +€5m to +€10m.

• 2024-25 is a transition year; recovery and high single-digit annual sales growth targeted from 2025-26; 2029-30 long-term objectives reaffirmed.