Remy Cointreau Aims for Growth Under New CEO Franck Marilly
The man stepping up to lead spirits giant Remy Cointreau into the future
Profit slump leads to Remy realizing intermediate financial goals
After a dip in sales and profits in the last fiscal year, Remy Cointreau is looking to bounce back. But with uncertainties in U.S. and Chinese trade policies, the company has had to adjust its medium-term targets for 2029/30. Incoming CEO Franck Marilly, who takes over from Eric Vallat on June 25, will be tasked with setting new objectives and strategies.
Last fiscal year, weak demand in the U.S. and China - key markets for Remy Cointreau - contributed to significant losses. Organic sales dropped by 18% to 984.6 million euros, and operating profit decreased by 30.5% to 217 million euros. However, cost savings of 85 million euros provided some relief.
The board remains optimistic, with expectations of mid-single-digit percentage growth in sales for 2025/26 due to a recovery in U.S. demand. Without accounting for potential tariff increases in China and the U.S., the company targets a high single-digit to low double-digit percentage increase in operating profit. But, potential tariff increases could have a gross impact of up to 100 million euros on operating profit - 60 million euros in China and 40 million euros in the U.S.
Rémy Cointreau generates 70% of its sales from cognac, primarily sold in the U.S. and China, making it more susceptible to tariffs than some competitors with broader geographic reach or product portfolios.
The Ideal Leader for these challenging times
Franck Marilly brings over thirty years of experience in luxury and cosmetics, working for prestigious brands like Chanel and Unilever. His leadership roles in international management and understanding of key markets will be invaluable in navigating the complexities of U.S.-China trade uncertainties.
Marilly's people-oriented management style focuses on valuing diversity and promoting collective performance among employees. This approach could foster a more collaborative environment within Remy Cointreau, potentially enhancing innovation and team performance.
A New Vision for the Future
Marilly's strategic focus includes:
- Value Strategy: Leveraging his experience, Marilly aims to pursue Remy Cointreau's value strategy, emphasizing sustainable performance and innovation.
- Innovation and Heritage: By capitalizing on the group's centuries-old heritage and its capacity for innovation, Marilly plans to accelerate the company's development.
- Market Expansion: With his experience in international contexts, Marilly is well-positioned to navigate complex geopolitical contexts, including the U.S.-China trade tensions, and facilitate strategic expansions into new territories while strengthening existing positions.
Marilly's appointment is expected to bring a fresh perspective and strategic focus to Remy Cointreau, potentially enhancing its resilience and growth prospects amid challenging global trade conditions.
References:1. BBC2. The Drinks Business3. The Spirits Business
In the context of Remy Cointreau's new CEO, Franck Marilly, taking over amidst financial challenges and uncertain trade policies, his extensive experience in luxury and cosmetics businesses like Chanel and Unilever will be key in shaping new strategies and reinforcing growth. With a focus on innovation, value strategy, and market expansion, Marilly's leadership style and international understanding are expected to enhance the company's resilience and potential for growth in the challenging global business environment.
