Remy Cointreau suffers sales drop due to China, trade tariffs

Remy Cointreau suffered a further drop in Cognac sales, as anti-dumping measures in China continued to limit demand in its key market. The Remy Martin Cognac maker, which is hunting for a new chief executive ahead of Eric Vallat’s planned exit this summer, said organic revenue fell 19% in its fiscal fourth quarter, a bigger decline than analysts had expected. However, it said the U.S. rebounded sharply in the quarter, due to stronger sales of Remy Martin VSOP and a favorable basis of comparison from last year. The company is facing challenges including the suspension of duty-free channels in China and uncertainty over trade tariffs in the US. Its shares have fallen about 50% in the past year through Tuesday’s close. In China, Remy and its rivals have been unable to sell through duty-free channels since December, which contributed to a 32% decline in sales of Cognac during the fourth quarter. If the Chinese Ministry of Commerce confirms the provisional duties on Cognac imports that were introduced in October last year, Remy said it would trigger an action plan to mitigate the effects. EU-US trade tensions: The 90-day tariff suspension and beyond It is also facing the prospect of further tariffs in the U.S., after President Donald Trump announced 20% tariffs on goods from the EU, which were later suspended for 90 days. However, Remy said this fiscal year would mark a resumption of its 2029/30 trajectory of high single-digit growth in sales. It announced a new 50 million euros ($56.6 million) cost-cutting plan, and said it was targeting a gradual improvement to its operating margin. By Sabah Meddings

Remy Cointreau suffers sales drop due to China, trade tariffs

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Published May 01, 2025

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Remy Cointreau suffers sales drop due to China, trade tariffs