Rémy Cointreau, the French maker of Rémy Martin cognac, has reported a challenging fiscal year 2024 with significant declines in key financial metrics. The company saw a 19% drop in sales, a 29% decrease in current EBIT, and a 37% decline in net profit. Despite these setbacks, the company maintains a recurring EPS of €3.84 and a net debt to EBITDA ratio of 1.68x. The dividend remains flat at €2, with a scrip option available. The downturn is attributed to sluggish growth in the US and disruptions in China. Additionally, profits slumped by 30%, and there is increased competition from fine tequila. Looking ahead, Rémy Cointreau anticipates a gradual recovery in sales in FY25 and a resumption of its growth trajectory by FY26. The company is also considering the potential influence of American rap fans on the rebound of French cognac.
As Rémy Cointreau profits slump 30% and fine tequila becomes more popular, will American rap fans help French cognac rebound? https://t.co/PCNdUOFonR
Heard on the Street: The epic cognac party that lifted Rémy Cointreau's profit during the pandemic is truly over. The cleanup now underway won’t be fast. https://t.co/03AEnLp3o6
Rémy Cointreau $RCO FY24 results (sales disclosed & EBIT guided in Apr) FY24 sales -19% Current EBIT -29% Net Profit -37% Recurring EPS €3.84 Net Debt / EBITDA 1.68x Dividend €2 (flat) but to have scrip option FY25 "gradual recovery in sales" FY26 "resumption of trajectory" https://t.co/6ccvetwzc9 https://t.co/XX49zJrAlS
Maker of Remy Martin Focuses on Growth Recovery in U.S. After a Challenging Year https://t.co/Q4bwgL8pck
Remy Cointreau posts smaller-than-expected profit slump, sees sales recovery https://t.co/pqrdziKgII https://t.co/2X8QUoe0RB
The French maker of Remy Martin cognac sees sluggish growth following a sharp downturn in the US and disruption in China https://t.co/XL4lJgqRVm