Rémy Cointreau (RMC) Q3 24/25 TU earnings summary

Executive summary

• Q3 2024-25 organic sales declined 21.5% year-over-year, with 9M sales down 17.8% due to high comparables, US destocking, and challenging conditions in China and APAC travel retail, partially offset by growth in Europe and direct channels in Asia.

• Americas experienced a sharp Q3 sales drop, APAC saw declines mainly from China, while EMEA showed sequential improvement driven by Liqueurs & Spirits.

• Direct-to-consumer and e-commerce channels in China showed resilience and double-digit growth, especially during Double 11 and Super Brand Day.

• Cost-cutting measures are being executed as planned, with a plan exceeding €50 million.

Financial highlights

• 9M 2024-25 group sales were €787.8 million, down 17.7% reported and 17.8% organic; Q3 sales were €254.1 million, down 20.6% reported and 21.5% organic year-over-year.

• Volume effects contributed -13.8% and price/mix -7.7% to Q3 sales decline; currency impact was minimal at €1.3 million for 9M.

• Cognac 9M organic sales fell 19.0% (volume -14.7%, price-mix -4.3%); Liqueurs & Spirits dropped 14.9% (volume -12.2%, price-mix -2.7%).

• Partner Brands sales declined 26.5% organically to €16.3 million.

Outlook and guidance

• Full-year 2024-25 organic sales decline expected near -18%, at the lower end of the -15% to -18% range.

• Current operating margin (COP) forecasted between 21% and 22% organically.

• FX expected to have a positive impact of €2–5 million on sales and €5–10 million on operating profit.

• No Americas growth expected before Q4 2024-25; APAC to see further sequential deterioration; EMEA to remain subdued.

• 2029–2030 midterm guidance reconfirmed, with targets of 72% gross margin and 33% COP margin.