Remy Cointreau's U.S. sales back to growth in Q4, China stays weak

PARIS, April 30 (Reuters) - French spirits group Remy Cointreau RCOP.PA reported a steeper-than-expected drop in fourth quarter revenue, as cognac sales in China remained weak while they returned to growth in the United States.

The maker of Remy Martin cognac and Cointreau liqueur, which is implementing a cost cutting plan of over 50 million euros ($56.88 million) to protect margins, stuck to its guidance for a current operating profit margin of between 21% and 22% of sales on an organic basis for the full year 2024/25.

Remy Cointreau, whose CEO Eric Vallat has said he will leave the company this summer, is facing weak demand and the threat of tariffs in its key U.S. and Chinese markets.

Group sales reached 196.8 million euros in the three months to March 31, marking an organic drop of 19%, compared with average analysts' expectations of a 17.9% decline in a company-compiled consensus.

For the 2024/2025 full year sales fell 18%, in line with the company's guidance for a decline of close to 18% and analysts' expectations for a 17.9% decline.

Sales at the Remy Martin cognac division , which makes the bulk of revenue, slumped 32.8% in the quarter, compared with analysts' expectations for a 29.9% decline.

($1 = 0.8791 euros)