(Paris) Spirits group Rémy Cointreau, hit hard by the decline in sales of its cognacs, saw its annual net profit fall by 37%, but is counting on a return to strength in the coming months, according to a press release published on Thursday.
“In a complex environment marked by limited visibility in its main markets, Rémy Cointreau anticipates a gradual resumption of its activity during the year 2024-2025”, which began in April, indicates the group in its press release.
The first half of the year is still expected to be affected by “continued inventory adjustments in the Americas region”, “a high basis of comparison” for the Asia-Pacific region and “subdued consumption” in the Europe-Mid and East-Africa, explains Rémy Cointreau.
In the United States, a major market for the company, the latter does not anticipate a real recovery in cognac sales before the fall, which is “later than we had anticipated”, declared the group’s general manager. , Eric Vallat, during a briefing with journalists.
Rémy Cointreau does not plan to lower its prices there to boost sales.
“This is why we do not want to compromise on prices, especially since we are ahead of our targets for 2030 and, even if last year was complicated, it remains the third best year (in financial results) in the history of Rémy Cointreau”, he added.
He was pleased to have members of the same family as a reference shareholder, “who focuses on the long term, not the next three months”.
The current situation has however “highlighted the need to better balance our activity over the long term” and to invest in countries such as India, Nigeria, certain countries in South-East Asia, also indicated the general manager.
During its staggered financial year, which ended at the end of March, the company, which also markets Cointreau liqueur, Mount Gay rum and The Botanist gin, generated an annual net profit of 185 million euros, compared to 294 million for the year. previous year (CA 275 million versus CA 437.5 million). This then represented a record result, boosted by the recovery in spirits sales after the COVID-19 pandemic.
But its sales then ran out of steam, particularly among wholesalers in the United States who had built up significant stocks.
Rémy Cointreau had already announced that its 2023-2024 turnover had fallen by 23%, to 1.19 billion euros (nearly 1.8 billion CA).
Its current operating margin fell over the period, from 27.7% to 25.5%.
The group particularly highlights the increase in its production costs, which had been partially offset by the price increase achieved in April 2023. However, it reduced all of its costs more than expected, by 145 million euros. against 100 million expected (216 million CA against 149 million CA).
At the opening of the Paris Stock Exchange, the action gained 4.1%, to 86.80 euros (129.20 CA dollars).