Rémy Cointreau: Currency Woes Mask Organic Gains and China Rebound

PARIS, France – April 30, 2026 – French spirits group Rémy Cointreau presented a complex picture of resilience and challenge with its full-year 2025-26 results, reporting stable organic sales that were ultimately overshadowed by significant currency headwinds. The maker of Rémy Martin cognac and Cointreau liqueur announced full-year sales of €935.3 million, achieving a slight +0.2% organic growth that met its own targets. However, on a reported basis, sales fell by -5.0%, a decline the company attributed almost entirely to a -5.2% negative currency impact from the volatile US dollar and Chinese renminbi.

Despite the hit to its top line, the family-owned group reaffirmed its annual target for Current Operating Profit (COP), signaling confidence in its strategic management. It expects an organic decline in the low double-digit to mid-teens range, a result of sustained investments in key markets, compounded by an anticipated negative currency effect on profit of between €25 million and €30 million. The results paint a portrait of a company navigating a turbulent global market by leveraging a diversified portfolio and playing a long game in strategic regions.

A Global Picture of Contrasts

The full-year performance reveals a sharp divergence in regional fortunes. The Americas proved to be a bright spot, delivering robust organic growth of +7.2%. This performance was fueled by a favorable comparison to the previous year and a marked improvement in depletions—the rate at which products are sold from wholesalers to retailers. The company credited this success to initiatives aimed at revitalizing its Rémy Martin VSOP cognac and the consistent strength of its Liqueurs & Spirits division in the region.

In stark contrast, the Asia-Pacific (APAC) region posted a -4.3% organic sales decline. This was largely driven by what the company called “challenging market conditions” in China and significant disruptions in the Travel Retail channel during the first half of the fiscal year. The broader Chinese luxury market has been navigating a cautious recovery, with consumer spending remaining tentative. However, a dramatic turnaround in the fourth quarter offered a powerful glimpse of potential recovery. Driven by a favorable comparison base and resilient business during the Chinese New Year, the Cognac division’s sales in APAC surged, with Rémy Martin reportedly gaining market share in China despite the difficult environment.

Meanwhile, the Europe, Middle East & Africa (EMEA) region reported a -3.1% organic decline, primarily impacted by weakness in the Cognac division. The company noted that “intense competitive pressures” and “subdued consumption” weighed on results in a market still finding its post-pandemic footing.

The Cognac Conundrum

Rémy Cointreau’s flagship Cognac division, which includes the iconic Rémy Martin and Louis XIII brands, ended the year with a marginal -0.5% organic sales decline. This figure masks a story of two halves. After a difficult nine months, the division mounted a spectacular comeback in the fourth quarter, posting +15.5% organic growth. This surge was almost single-handedly powered by the rebound in China.

This performance comes amid significant headwinds for the entire Cognac industry. Competitors like Pernod Ricard and LVMH have also reported struggles, particularly with weak demand in the US and China. The global Cognac market has been grappling with shifting consumer habits, with recent industry data showing a trend towards more affordable VS expressions at the expense of higher-margin VSOP and XO categories. Furthermore, the category faces geopolitical risks, including an ongoing anti-dumping investigation by China into brandy imported from the European Union, which has cast a shadow over future prospects.

Rémy Cointreau’s Q4 performance in China suggests its brand equity remains strong, but the broader market challenges persist. While sales in the Americas saw a slight decline in the fourth quarter against a very high comparison base from the prior year, the company noted that underlying trends for its high-end expressions like Rémy Martin XO remain encouraging.

Liqueurs & Spirits Provide a Steadying Hand

While Cognac navigated a volatile year, Rémy Cointreau’s Liqueurs & Spirits division proved to be a crucial pillar of stability and growth, posting a solid +2.8% organic sales increase for the full year. This performance highlights the strategic value of the group’s diversified portfolio.

Brands such as Cointreau, The Botanist gin, and the Bruichladdich single malt scotch portfolio were standout performers. They consistently outperformed their respective categories, particularly in the Americas, where they capitalized on the enduring trend of premiumization and at-home cocktail making. The launch of new products, such as Cointreau's first ready-to-serve Spritz, demonstrates an agile response to evolving consumer tastes. This division’s success aligns with a broader market shift towards craft, authenticity, and diverse flavor profiles, with the global premium spirits market projected to see robust growth in the coming years.

The strength of this division provides a vital counterbalance to the fluctuations in the Cognac market, validating the company’s long-term strategy of cultivating a range of singular, high-end brands. As the company continues its “sustained investment” in the US and China, the consistent performance of its liqueur and non-cognac spirits portfolio offers a solid foundation for weathering economic uncertainty and funding future growth across all its brands.