Full Year 2026 Remy Cointreau SA Earnings Call Transcript
Key Points
- Remy Cointreau (REMYF) reported a slight organic sales growth of 0.2%, totaling EUR935.3 million, indicating resilience in a challenging environment.
- The company launched RC Forward, an ambitious transformation program aimed at unlocking the group's full potential by simplifying operations and accelerating decision-making.
- Remy Cointreau (REMYF) achieved a significant improvement in free cash flow, increasing from EUR19.2 million last year to EUR53.8 million.
- The company made progress in sustainability, with a 17% reduction in carbon emissions and a 36% reduction in water withdrawals compared to the 2021 baseline.
- Remy Martin gained market share in the US and China, with a 0.6-point increase in the US and a 3-point increase in China, demonstrating strong brand performance in key markets.
- Current operating profit (COP) decreased by 11.5% on an organic basis, with a margin decline of 2.6 points, primarily due to a decline in gross margin and higher production costs.
- The net debt-to-EBITDA ratio increased slightly to 3.22 times, reflecting financial pressure despite improved free cash flow.
- Remy Cointreau (REMYF) faced challenges in the US market, with total depletions remaining negative at the end of March.
- The company reported a negative currency impact of EUR26.6 million on operating profit, highlighting exposure to foreign exchange fluctuations.
- The dividend was temporarily calibrated, resulting in a 50% reduction compared to the previous year, reflecting a cautious approach to capital allocation amid deleveraging efforts.
Good morning, everyone, and thank you for being with us this morning for Remy Cointreau '25-'26 full-year results. I'm here with Franck Marilly, our CEO; and Luca Marotta, our Deputy CEO and CFO. The both of them will, of course, take you through the detailed results. Before we review the year in more detail, I would like to share a few reflections on where we stand today and how the Board views the future of the group. Firstly, it is with a clear head that we must acknowledge the reality we live in.
Over the past three years, Remy Cointreau has operated in an exceptionally challenging macroeconomic and geopolitical environment. At the same time, our performance has fallen short of our ambitions. Consumer behaviors are evolving. Market dynamics are changing, and it is key for us to adapt accordingly. Yet, despite these numerous challenges, we remain absolutely confident in our ability to create value.
We own a portfolio of exceptional brands with significant untapped potential. As illustrated by
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