Rémy Cointreau (RMC) H1 25/26 earnings summary

Executive summary

• Organic sales declined 4.2% year-over-year to €489.6m in H1 2025-26, with Cognac down 7.6% and Liqueurs & Spirits up 4.1%; Partner Brands fell 35.7%.

• Current Operating Profit (COP) dropped 13.6% organically to €108.7m, with margin at 22.2%; net profit was €63.1m, down 16.2% organically and 31.3% reported.

• CEO transition in June 2025 and a strategic transformation plan focusing on agility, commercial resource rebalancing, and brand strategy.

• Americas showed strong organic sales growth (+12.8%), while APAC (-14.8%) and EMEA (-9.2%) declined; APAC, especially China, faced tough market conditions.

• Five key levers for performance: organization adaptation, commercial resource rebalancing, brand DNA expression, value-driven strategy, and investment model reevaluation.

Financial highlights

• Gross margin declined to 68.0% (down 2.4 pts organically), mainly due to tariffs and unfavorable price mix.

• COP margin dropped 2.7 pts to 22.2%; net margin at 12.9%, down 2.2–4.3 pts.

• Free cash flow was negative at -€16.5m, improved from -€35.6m year-over-year.

• Net financial debt increased to €686.7m, with net debt/EBITDA at 2.96x.

• EPS declined to €1.22, down 17.7–32.6% year-over-year.

Outlook and guidance

• FY 2025-26 organic sales growth expected to be stable to low single digits; COP to decline by low double digits to mid-teens.

• Currency headwinds expected to impact sales by €50–60m and COP by €25–30m for the full year.

• Sustained investments planned in China and the US to support recovery.

• Tariffs in the US and China expected to cost €25m for the year.