Rémy Cointreau: Group share of net income down 18.6% to 92.0ME

(CercleFinance.com) - Rémy Cointreau posted consolidated sales of 533.
7 million euros in the first half of 2024-25, down -15.9% on an organic basis. On a reported basis, sales fell by -16.2%, including a negative currency effect of -0.3%, mainly linked to the evolution of the Chinese renminbi.

Cognac division sales fell by -17.5% organically, including a -14.2% drop in volumes and a -3.3% price-mix effect. This performance mainly reflects ongoing inventory adjustments in the Americas region.

Profit from recurring operations came to 147.3 million euros, down -17.6% organically. This reflects the sharp drop in sales, most of which was offset by a drastic reduction in costs. The operating margin before non-recurring items thus increased by +1.0 point to 27.6% as reported (of which -0.5 points on an organic basis).

Net income, Group share, came to €92.0 million, down -18.6% as reported, giving a net margin of 17.2%, down -0.5 pt as reported.

EPS, Group share, amounted to 1.80E, down -19.4% as reported compared to H1 2023-24.

Rémy Cointreau anticipates for 2024-25 an organic decline in sales of between -15% and -18% and a current operating margin of between 21% and 22%, organic.

The Group reiterates its financial targets for 2029-30: a Gross Margin of 72% and a Current Operating Margin of 33% (based on 2019-20 exchange rates and scope of consolidation).

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