Rémy Cointreau, one of the world’s leading high-end spirits groups, reported revenue of EUR 984.6 million in the 2024–25 financial year, marking an 18.0% drop on an organic basis.
The decline reflects a tough global environment, shaped by continued destocking in the Americas, complex market conditions in China, and shifting trade policies. Despite this downturn, the group managed to protect its margins and remains committed to its long-term strategic roadmap through 2030.
Regional Breakdown: Weakness in APAC, Recovery in the Americas
The Americas experienced a -20.2% organic decline, heavily influenced by inventory reduction in the first three quarters amid slowed consumption. However, the fourth quarter showed signs of strong recovery, especially in the United States, where Rémy Martin VSOP began benefiting from a focused action plan and stable volume trends.
Asia-Pacific was hit even harder, with an -18.2% drop, primarily due to a significant slowdown in China, exacerbated by the suspension of duty-free channels since December 2024 and unfavorable comparisons with strong prior-year figures. Nonetheless, Rémy Martin gained market share in the region and saw slight increases in depletions during Chinese New Year.
EMEA posted a -13.8% decline, driven by cautious distributor behavior and optimization of stock levels heading into 2025–26. Contrasting consumption trends, especially in the Cognac category, also weighed on performance.
Cognac Division Under Pressure
The Cognac division endured a difficult year, culminating in a staggering -32.8% organic drop in Q4. Even when excluding the China duty-free impact and Chinese New Year calendar shifts, the division declined by -23.7%, underscoring challenges in its core markets. Nevertheless, Rémy Martin retained brand strength, particularly in premium segments.
Bright Spot: Liqueurs & Spirits
One area of resilience came from the Liqueurs & Spirits division, which grew 16.1% organically in Q4. In the Americas, brands like Cointreau, St-Rémy, Mount Gay, and The Botanist performed exceptionally well. Asia-Pacific was another highlight, with strong demand for Cointreau, Bruichladdich, and Telmont in China and Japan. Even in EMEA, where total sales dipped slightly, core brand consumption remained robust.
Partner Brands Falter
Sales of Partner Brands plummeted -29.7% in Q4, dragged down by shifting market dynamics and the Group’s broader focus on its own premium portfolio.
Tariff Tensions: China and the United States
Two major geopolitical developments could shape the group’s future:
- China’s provisional 38.1% tariff on imported Cognac, effective October 11, 2024. While the financial impact for 2024–25 is minor, Rémy Cointreau is ready to deploy mitigation strategies should these duties be finalized.
- In the United States, a 90-day pause on new “reciprocal” tariffs (up to 20%) offers breathing room. However, a 10% floor duty on non-Chinese imports remains in place, underscoring ongoing trade uncertainty.
Margins Protected, Outlook Stable
Despite revenue pressure, Rémy Cointreau managed to preserve its operating margin thanks to strict cost control and a new cost-reduction plan worth over EUR 50 million. The group confirms its operating margin target of 21%–22% for the year, aided by a favorable EUR 5 million currency effect.
Looking Ahead to 2025–26 and Beyond
The group calls 2024–25 a “transition year”, a period necessary to finalize stock adjustments—especially in the Americas—and lay the foundation for renewed growth. From 2025–26, Rémy Cointreau expects to resume its trajectory toward ambitious 2029–30 goals:
- High single-digit organic revenue growth
- Gradual improvement in operating margin
- Gross margin of 72%
- Operating margin of 33% (based on 2019–20 scope and FX)
Despite a turbulent year, Rémy Cointreau’s strategic discipline, brand equity, and global portfolio put it in a strong position for a rebound—provided macroeconomic and geopolitical headwinds ease.
Source: Rémy Cointreau