Rémy Cointreau (RMC) H1 25/26 earnings summary

Executive summary

• Organic sales declined 4.2% year-over-year to €489.6 million in H1 2025-26, with Cognac down 7.6% and Liqueurs & Spirits up 4.1%; current operating profit (COP) fell 13.6% organically to €108.7 million, and net profit dropped 31.3% as reported to €63.1 million, with EPS at €1.22.

• Americas showed strong organic sales growth (+12.8%), while APAC (-14.8%) and EMEA (-9.2%) declined; Cognac underperformed in Asia-Pacific, especially China, while Liqueurs & Spirits grew in the Americas.

• The group is undergoing a strategic transformation, with a new CEO appointed in June 2025, focusing on agility, brand strategy, cost discipline, and innovation.

• Five key levers for performance have been identified: organization adaptation, commercial resource rebalancing, brand DNA expression, value-driven strategy, and investment model reevaluation.

• Portfolio review and innovation pipeline are prioritized, with launches targeting convenience, affordability, and cocktail culture.

Financial highlights

• Gross margin decreased by 2.4 percentage points to 68.0% of sales; COP margin dropped 2.7 points to 22.2%.

• Net profit group share was €63.1 million, down 31.3% as reported; EPS at €1.22, down 32.6%.

• Free cash flow was negative at -€16.5 million, an improvement from -€35.6 million in H1 2024-25.

• Net financial debt increased to €686.7 million, with net debt/EBITDA ratio at 2.96.

• Dividend of €1.5 per share was approved, partially paid in shares.

Outlook and guidance

• Full-year organic sales growth expected to be flat to low single digit; COP to decline by low double digit to mid-teens.

• Tariffs and customs duties estimated to impact COP by €25 million; negative forex impact of €50–60 million on sales and €25–30 million on COP.

• Sustained investments planned in China and the US to support recovery; strategic reset and midterm roadmap to be presented by November.