Rémy Cointreau (RMC) Q1 24/25 TU earnings summary

Executive summary

• Q1 organic sales declined 15.6% year-over-year to €217 million, driven by continued de-stocking in the U.S., high base effects in APAC and EMEA, and soft global consumption amid strong promotional activity.

• Volume fell 20.2%, partially offset by a 4.6% positive price/mix effect; Cognac was less impacted than Liqueurs and Spirits.

• Americas saw a sharp sales decline due to ongoing de-stocking and weak demand; APAC was nearly flat with China stable and Japan strong; EMEA posted a double-digit drop, impacted by high comps and soft trends.

Financial highlights

• Q1 sales were €217 million, down €40.5 million year-over-year (15.7% reported, 15.6% organic), with minimal currency impact.

• Cognac sales fell 12.2% organically to €135.5 million; Liqueurs & Spirits dropped 20.4% to €75.8 million.

• Partner/Non-group brands sales declined 24.6% organically.

• Price-mix contributed +4.6% to group sales; volume effect was -20.2%.

Outlook and guidance

• Full-year 2024-25 guidance confirmed, with gradual sales recovery expected as U.S. de-stocking concludes and APAC/EMEA comps normalize.

• H1 to remain impacted by U.S. de-stocking, high APAC comps, and soft EMEA trends; H2 anticipated to recover, mainly led by the U.S.

• Currency effects expected to negatively impact sales by €5–10 million, but positively impact operating profit by €3–7 million.

• No sequential improvement expected in Q2; performance may be similar or worse than Q1.

• Strategic plan targets high single-digit annual organic sales growth and gradual margin improvement by 2029-30.