FY 2023-24 sales: -19.2% on an organic basis

Strong sequential improvement in sales in Q4: -0.7 %

2023-24 COP margin guidance confirmed

• China: significant growth in Q4 sales, boosted by positive phasing effects and good resilience of Rémy Martin CLUB in a persistently complex market
• United States: continued destocking in Q4, amplified by negative phasing effects
• EMEA: sequential improvement in Q4 sales, despite contrasting market trends
• Travel Retail: strong rise in sales in Q4; full-year sales above 2019-20 level
• Cost-cutting plan confirmed: €100m of cost savings
• 2023-24 COP margin objective confirmed: contained decrease on an organic basis

Rémy Cointreau reported 2023-24 sales of €1,194.1 million, down -19.2% on an organic basis[1] (+16.2% compared to 2019-20). On a reported basis, sales were down -22.9%, including a negative currency effect of -3.7%, due primarily to trends in the renminbi and the US dollar.

This performance includes a nearly flat sales performance in Q4 2023-24 in organic terms (-0.7%), representing a +14.3% rise compared to Q4 2019-20.

In FY 2023-24, APAC and EMEA regions grew by +2.0% and +0.7%, respectively, demonstrating resilience in the face of soft consumer trends. Following a decline in shipments in Europe and China in Q3, the Group successfully normalized stocks in Q4. By contrast, sales in the Americas fell -39.6%, reflecting continued major destocking in an environment marked by inflation, more intense promotions, and strong post-Covid normalization of consumption.

Breakdown of sales by division:

Cognac

The Cognac division saw Q4 sales rise +15.4% on an organic basis, driven by a significant increase in China and, to a lesser extent, growth in the EMEA region.

In the United States, sales were once again penalized by an adverse environment and an intensely promotional market. In this context, the Group faced continued deterioration in value depletions[2] and pursued destocking while maintaining a firm pricing policy in keeping with its strategy of long-term value.

In China, the Group reported significant growth in a persistently complex market. This excellent performance reflected positive phasing effects and resilient underlying demand driven by the success of the Rémy Martin CLUB brand and numerous marketing and communications initiatives aimed at boosting sales during the Chinese New Year. Major destocking carried out ahead of the Chinese New Year allowed the Group to end the year with inventories at a healthy level.

The EMEA region turned in a strong performance driven by good momentum in the Africa/Middle East region and in Western Europe.

Liqueurs & Spirits

Fourth-quarter sales of the Liqueurs & Spirits division fell back by -27.0% on an organic basis, hit by negative phasing effects in the United States, where the Group deliberately opted to complete most of its shipments in the third quarter. Underlying demand remained resilient despite a tough market and high basis of comparison.

At the same time, the EMEA region reported a steep improvement in sales backed by trends all of its geographies in a market slowed by inflation and facing stepped-up promotional activity.

Lastly, the APAC region recorded a decline in sales that reflected a slowdown in whisky sales in China.

Partner Brands

Sales of Partner Brands eased by -1.1% on an organic basis in the fourth quarter, hit by adverse trends in the Benelux countries.

 2023-24 full-year COP margin guidance confirmed

In 2023-24 Rémy Cointreau protected its profitability and investment capacity through tight cost controls, while continuing to roll out its medium-term plan. To this end, it:

• maintained a strict and uncompromising pricing policy
• protected its gross margin in a persistently inflationary environment
• selectively reduced its marketing and communications spend, particularly for the Cognac division
• significantly reduced other operating costs

As a result, in 2023-24 Rémy Cointreau expects to see a contained organic decrease in COP margin thanks to deployment of a major cost-cutting plan, estimated at around €100 million in savings this year (including €25 million already achieved in the first half)

The Group now anticipates that unfavourable exchange rates will cut Current Operating Profit by between -€7m and -€10m in 2023-24 (versus -€10m and -€15m previously).

[1] All references to “on an organic basis” in this press release refer to sales growth at constant currency and consolidation scope

[2] Wholesalers’ sales to retailers