(GETTY IMAGES NORTH AMERICA/ROB KIM)
The spirits group Rémy Cointreau, hit hard by the decline in sales of its cognacs, saw its annual net profit fall by 37%, but is banking on renewed vigor in the months to come, according to a press release published 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 should still 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-Middle East region. -Africa, specifies 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.
“Is the future of our activity, spirits, really more volume, sold less expensively? I don’t think so,” explained Eric Vallat.
“This is why we do not want to compromise on prices, especially since we are ahead of our objectives for 2030 and, even if last year was complicated, it remains the third best year (in terms of 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 on the next three months”.
The current situation has however “highlighted the need to better balance our activity in the long term” and to invest in countries such as India, Nigeria, certain countries in South-East Asia, also indicated the general manager.
In the short term, to maintain its profitability, the group plans in particular “a measured and selective increase in its prices” and “strict control of its structural costs”.
During its staggered financial year, 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 per year. former. This then represented a record result, boosted by the recovery in spirits sales after the Covid 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.
Its current operating margin fell over the period, going from 27.7% to 25.5%.
The group highlights in particular the increase in its production costs, which had been partially offset by the increase in prices achieved in April 2023. However, it reduced all of its costs more than expected, by 145 million euros. against 100 million expected.
At the opening of the Paris Stock Exchange, the action gained 4.1%, to 86.80 euros.