French cognac and liqueur maker Remy Cointreau said Wednesday it was scrapping its earnings outlook for the 2029-2030 financial year due to uncertainty over US and Chinese tariff policies.
US president Donald Trump has imposed 10 per cent tariffs on imports from nearly every country around the world since April and has threatened to ramp up duties on goods from the European Union.
Separately, Beijing has imposed anti-dumping duties on European brandy exports since last year, after the EU imposed tariffs on Chinese electric vehicles.
French cognac makers say the spat with China, a major market for the industry, is costing them €50 million (£42m) per month.
Remy Cointreau, which makes Remy Martin and Louis XIII cognac as well as Cointreau orange liqueur, said in an earnings statement that "the conditions required to maintain its 2029-2030 targets are no longer in place".
The group cited "the continued lack of macroeconomic visibility, the geopolitical uncertainties surrounding US-China tariff policies, and the absence to date of a recovery in the US market based on improving underlying trends".
The company had aimed for a recurring operating margin of 33 per cent in 2029-2030, compared to 22 per cent in the 2024-2025 financial year.
Remy Cointreau said its new chief executive Franck Marilly, who takes over on June 25, "will establish his own strategic roadmap".
The group also reported a net profit of €121m for the 2024-2025 fiscal year, a 34 per cent drop from the previous year.
(AFP)
