Rémy Cointreau (RMC) H1 24/25 earnings summary

Executive summary

• H1 sales declined 15.9% organically to €533.7 million, with net profit down 18.6% to €92.0 million and current operating profit (COP) down 17.6% organically to €147.3 million; COP margin improved by 1.0 point to 27.6% as reported.

• Cost discipline and a new cost-saving plan exceeding €50 million, with €42 million realized in H1, helped offset sales declines and support margins.

• Strategic focus remains on long-term brand equity, innovation, and preparing for recovery in key markets, with 2024-25 objectives and 2029-30 strategic plan confirmed.

• Americas and APAC regions saw significant sales declines, while EMEA also trended lower; early signs of stabilization are emerging in the US and China.

• E-commerce now represents 25% of China sales, and D2C share for Louis XIII exceeds 70%.

Financial highlights

• Net sales: €533.7 million (-15.9% organic); gross margin: 72.5% (down 1.4 pts YoY, up 3 pts vs. 2019-20); net profit: €92.0 million (-18.6%); EPS: €1.80 (-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%.

• A&P expenses reduced by a third YoY, now 18.4% of sales, but up 25% vs. pre-COVID.

• Net financial expenses increased to €21.1 million (+34.4%).

Outlook and guidance

• Full-year organic sales expected to decline 15–18%; COP margin guidance at 21–22% (organic, ex-FX); no Americas recovery before Q4.

• H2 to see increased A&P spend to support peak seasons in the US and China.

• 2029-30 long-term objectives reaffirmed, with targets of gross margin 72% and COP margin 33%.

• MOFCOM provisional duties in China expected to have marginal P&L impact in FY24-25; outcome remains uncertain.

• 2024-25 is a transition year; 2025-26 expected to resume high single-digit annual sales growth.