Cognac Division Powers Q4 Momentum (Image Credits: Unsplash)
French spirits producer Rémy Cointreau delivered a promising finish to its 2025-26 fiscal year as fourth-quarter organic sales climbed 8.9% to €199.9 million.[1][2] This acceleration stood out against earlier challenges, with the Cognac division posting a 15.5% organic gain, fueled by renewed demand in China amid favorable comparisons and calendar effects. The results underscored the company’s resilience in premium segments despite persistent headwinds in key markets.
Cognac Division Powers Q4 Momentum
The Cognac segment, which accounts for the bulk of Rémy Cointreau’s revenue, led the quarter’s strong showing with sales reaching €123.2 million, up 15.5% organically.[1] Growth stemmed from robust performance in the Asia-Pacific region, where China benefited from a softer prior-year base, positive timing around Chinese New Year, and steady consumer interest. Even as broader market conditions remained tough, Rémy Martin maintained or gained market share in this vital territory.
Liqueurs and Spirits held steady at €73.0 million, with organic sales dipping just 0.1%.[1] Performances varied by area: solid gains in the Americas from brands like Cointreau and The Botanist contrasted with softer European trends due to phasing. In Asia-Pacific, China and Japan provided uplift, highlighting diversified strength within the portfolio.
Partner Brands saw a 6.1% organic decline to €3.7 million, continuing a pattern of reduced contributions.[1]
China’s Role in Cognac Rebound Takes Center Stage
China emerged as a key driver for Cognac’s Q4 success, where sales grew sharply despite ongoing economic pressures and prior disruptions like duty-free channel issues.[1] Favorable year-over-year comparisons and resilient demand during festive periods helped offset earlier softness. Rémy Cointreau noted continued market share progress for Rémy Martin, even as high-end consumption faced hurdles.
This uptick aligned with sequential improvements elsewhere. In the Americas, Cognac dipped modestly amid a high U.S. base from the previous year’s double-digit rise, though volume depletions showed progress, particularly for Rémy Martin VSOP initiatives. Europe, Middle East, and Africa marked a second straight quarter of growth, aided by Travel Retail recovery.
Overall, the quarter reflected strategic adjustments paying off, including targeted marketing and inventory management in premium cognac lines.
Full-Year Performance Meets Expectations Amid Mixed Regional Trends
For the entire 2025-26 fiscal year, group sales totaled €935.3 million, achieving a 0.2% organic increase that matched company targets.[1] Reported sales fell 5.0%, largely due to a 5.2% currency hit from weaker dollar and renminbi. Cognac sales came in at €573.6 million, down 0.5% organically, while Liqueurs and Spirits rose 2.8% to €346.1 million.
Regionally, the Americas delivered 7.2% organic growth, supported by depletion recovery and brand revitalization efforts.[1] Asia-Pacific declined 4.3%, hit by China’s complexities and Travel Retail setbacks, though Rémy Martin held ground. EMEA slipped 3.1% on competitive Cognac pressures and muted demand.
Early signs from the new fiscal year reinforced positivity: first-quarter 2026-27 sales grew 5.7% organically to €220.8 million, with Liqueurs and Spirits up 17.3%.[1]
Key figures from the year included:
- Cognac full-year organic: -0.5%
- Americas organic: +7.2%
- APAC organic: -4.3%
- Q4 group organic: +8.9%
Outlook Balances Caution with Investment Focus
Rémy Cointreau reaffirmed its 2025-26 current operating profit (COP) guidance, projecting an organic decline in the low double-digits to mid-teens range.[2] Currency headwinds are expected to subtract €25 million to €30 million from COP. The company plans sustained spending in China and the U.S. to nurture recovery.
Challenges persist, including volatile currencies, competitive landscapes, and selective consumption in premium spirits. Yet, the Q4 momentum, market share stability, and early fiscal 2027 gains signal potential stabilization.
As Rémy Cointreau navigates these dynamics, its emphasis on premium brands like Rémy Martin XO and Louis XIII positions it for long-term premiumization trends. Investors will watch whether China’s cognac appetite sustains this quarter’s spark into broader growth.
