Rémy Cointreau S.A.

Group sales totaled EUR 489.6 million, down 4.2% organically. COP was EUR 108.7 million, down 13.6% organically, with a 22.2% margin, down 2.7 points organically. Gross margin contracted 2.4 points, but management said organic gross margin was 70.1%, slightly above H1 2019/20. Net profit, group share was EUR 63.1 million, down 31.3% reported, and EPS was EUR 1.22, down 32.6% reported. Free cash flow was negative EUR 16.5 million, and net debt at end-September 2025 was EUR 686.7 million; net debt-to-EBITDA was 2.96. For FY2025/26, the company confirmed organic sales growth of flat to low single digit and organic COP decline of low double digits to mid-teens, with tariff impact estimated at around EUR 25 million and ForEx impact expected at EUR 50 million to EUR 60 million on sales and EUR 25 million to EUR 30 million on COP.

Franck Marilly said the company is in a reset-and-reignite phase and that the immediate priority is to reignite top-line growth, starting with Cognac and then using that momentum to support the rest of the portfolio. He repeatedly emphasized being less dogmatic and more pragmatic, especially on pricing, mix, brand architecture, A&P allocation and channel/geographic expansion. His tone was candid and action-oriented, with a focus on quick wins, volume growth, and a future roadmap to be detailed later.

Luca Marotta focused on margin pressure, cash flow and balance-sheet dynamics. He said gross profit fell 7.4% organically, gross margin was down 240 basis points due mainly to customs duties and unfavorable price/mix, A&P rose to 19.4% of sales, and net debt increased to EUR 686.7 million with leverage at 2.96x. He also highlighted free cash flow of negative EUR 16.5 million, expected financial charges of less than EUR 50 million for the year, and a full-year tax rate around 29% including 1.5 points of exceptional tax.

Analysts pressed management on quick wins in Rémy Martin, leverage and whether the 3x net debt-to-EBITDA level constrains strategy. Management said quick wins could include more targeted A&P, pricing flexibility, trade activations, geographic expansion and depletion incentives, while Luca argued the higher leverage is a useful pressure point that forces stronger cash generation rather than acting as a hard constraint. Questions also focused on China and the U.S.; management said China improved around Mid-Autumn Festival and Double 11, while U.S. trends continued to improve but remained challenging.