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On Thursday June 6,<\/strong> spirits group R\u00e9my Cointreau<\/strong> unveiled its annual results for the 2023-2024 financial year<\/strong>, marked by a sharp decline in its financial performance. Despite its efforts to adapt and cut costs, the group suffered the consequences of a difficult economic environment, particularly on the American and Asian markets.<\/p>\n <\/p>\n R\u00e9my Cointreau posted sales down 19.2% on a like-for-like basis, to 1.2 billion euros<\/strong>. Net income fell by 37.1%, from 294 million euros in 2022-2023 to 184.8 million euros this year.<\/strong><\/p>\n <\/p>\n This drop was expected by analysts, given the persistent challenges in the Group’s main markets.<\/p>\n <\/p>\n To address this situation, R\u00e9my Cointreau has implemented a robust cost-saving plan, exceeding its initial target of 100 million euros to 150 million euros.<\/strong><\/p>\n <\/p>\n \u201cWe went through a complex year, and we reacted very quickly by adapting our cost structure,\u201d<\/em> said \u00c9ric Vallat<\/strong>, the group’s CEO. Despite these cuts, the company continued to invest and innovate.<\/p>\n <\/p>\n <\/p>\n The cognac division<\/strong>, mainly represented by R\u00e9my Martin<\/strong>, was particularly hard hit, with a 25.1%<\/strong> drop in sales. Indeed, the assurances given by Xi Jinping to Emmanuel Macron<\/strong> during his recent visit<\/a> regarding the threat of higher customs duties have not allayed the concerns of Charente wine merchants and growers. They are now expressing their \u201cvery serious concerns\u201d.<\/p>\n <\/p>\n\n <\/p>\n Profit from recurring operations for cognac fell by 34.4% to 265.7 million euros from 405.2 million euros last year.<\/strong><\/p>\n <\/p>\n In the United States<\/strong>, sales plummeted by almost 40%<\/strong>, due in part to a change in trend among African-American consumers, once fervent cognac lovers.<\/p>\n <\/p>\n The liqueurs and spirits division<\/strong>, on the other hand, held up better, recording a drop in sales of only 4.6%.<\/strong><\/p>\n <\/p>\n <\/p>\n R\u00e9my Cointreau maintains its ambition to become the world leader in exceptional spirits by 2030<\/strong>. \u201cIn a complex environment marked by limited visibility in its main markets, R\u00e9my Cointreau anticipates a gradual recovery in its business over the course of 2024-2025,\u201d<\/em> says the group’s press release.<\/p>\n <\/p>\n The first half of the year should still be affected by inventory adjustments in the Americas region, but a recovery is expected from 2025-2026<\/strong>. The Group is targeting average annual sales growth of \u201chigh single-digit\u201d<\/strong> in organic terms.<\/p>\n <\/p>\n Despite the poor results, R\u00e9my Cointreau has also decided to maintain its dividend at a record level of 2 euros per share<\/strong>, with the option of payment in shares. However, cash profit or free cash flow was significantly lower than net income, amounting to just 14 million euros, resulting in an increase in net debt of 113 million euros.<\/strong><\/p>\n <\/p>\n R\u00e9my Cointreau’s annual results reflect a difficult year for the Group. Nevertheless, the company remains optimistic about a gradual recovery of its business and maintains its long-term strategic objectives.<\/p>\n <\/p>\nCognac still impacted<\/h2>\n
Anticipated recovery<\/h2>\n
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