By Dominique Vidalon and Emma Rumney
PARIS/LONDON (Reuters) -French spirits group Remy Cointreau on Wednesday abandoned its 2030 sales growth ambitions, saying tariffs, persistently slow U.S. sales and high levels of uncertainty could derail its plans for this financial year and beyond.
The maker of Remy Martin cognac and Cointreau liqueur, which has been grappling with tariffs and sliding sales in its key U.S. and Chinese markets, also reported a smaller than expected 30.5% drop in annual organic operating profit.
In a statement, Remy said its 2030 goals were no longer realistic amid uncertainty, a lack of recovery in sluggish U.S. sales and tariffs affecting its cognac in both China and the United States, which could reduce its 2025/26 operating profit by a high-teens percentage in a "worst-case scenario".
"Remy Cointreau believes the conditions required to maintain its 2029-2030 targets are no longer in place," it said.
Incoming CEO, luxury goods veteran Franck Marilly, would establish his own strategic roadmap, the company continued.
Its shares fell almost 3% in early trade.
Remy joins peers Diageo and Pernod Ricard in withdrawing sales targets that had become widely seen as overly ambitious as the entire sector endures a sharp slowdown from previous boom years for pricey liquors.
But the French company, which makes 70% of its sales from cognac, mostly in the U.S. and China, has suffered more than peers as drinkers in both nations ditch the brandy and both governments have levied tariffs.
The withdrawal of targets should come as no surprise, but the extent of the tariff hit outlined by Remy had not been baked in by the market, Jefferies analyst Edward Mundy said.
Remy said potential increases in duties could deal a 65 million euro ($74 million) blow to operating profit after mitigation measures. As things currently stand, it expects organic growth in operating profit in the year ended March 2026.
Sales would also return to mid-single digit growth this financial year, but in large part thanks to an easier base of comparison versus steep declines in 2024/25, it forecast.
Group operating profit for the year ended March 2025 fell 30.5%, versus a 31.7% drop expected by analysts.
This was partially offset by 85 million euros of cost cuts.
($1 = 0.8794 euros)