Rémy Cointreau (RMC) Q3 24/25 TU earnings summary

Executive summary

• Q3 2024-25 organic sales declined 21.5% year-over-year, mainly due to high comparables, US destocking, and challenging conditions in China and APAC travel retail, though EMEA and Rest of Asia returned to growth.

• Value depletion outperformed sell-in, indicating stronger end-market demand versus shipments.

• Cost-cutting measures exceeding €50 million are being executed as planned.

• Full-year guidance is confirmed at the lower end of the -15% to -18% organic sales decline range.

Financial highlights

• Nine-month 2024-25 sales were €787.8 million, down 17.8% organically and 17.7% reported year-over-year, with a €117.1 million organic decline.

• Q3 sales were €254.1 million, down 21.5% organically and 20.6% reported year-over-year.

• Cognac 9M organic sales fell 19.0% (volume -14.7%, price-mix -4.3%); Liqueurs & Spirits dropped 14.9% (volume -12.2%, price-mix -2.7%).

• Slight positive FX impact of €1.3 million, mainly from GBP and USD.

Outlook and guidance

• Full-year 2024-25 organic sales expected to decline near -18%, at the lower end of the -15% to -18% range.

• Operating profit margin (COP) forecasted between 21% and 22%.

• FX rates expected to add €2–5 million to sales and €5–10 million to operating profit.

• No Americas growth expected before Q4 2024-25; APAC to see further sequential deterioration; EMEA to remain subdued.

• 2029–2030 midterm guidance reconfirmed.