French cognac and liqueur producer Remy Cointreau has cancelled its profit forecast for the 2029-2030 financial year due to uncertainty surrounding US and Chinese customs policy.

In April, US President Donald Trump imposed a 10% tariff on imports from almost all countries around the world and threatened to increase tariffs on goods from the European Union.

For its part, Beijing imposed tariffs on European brandy exports last year after the EU imposed tariffs on Chinese electric cars.

French cognac producers claim that the conflict with China, which is a major market for the industry, is costing them €50 million ($57 million) a month.

Remy Cointreau, producer of Remy Martin and Louis XIII cognacs and Cointreau liqueur, said in its earnings report that ‘the conditions necessary to maintain the 2029-2030 targets are no longer in place.’

The group cited ‘the ongoing lack of macroeconomic visibility, geopolitical uncertainty surrounding US and Chinese tariff policy, and the lack of recovery in the US market based on an improvement in underlying trends.’

The company had set a target of achieving an operating margin of 33% in 2029-2030, compared with 22% in the 2024-2025 financial year.

Its new CEO, Frank Marilli, who takes up his post on 25 June, ‘will draw up his own strategic roadmap’.

The group also reported a net profit of €121 million for the 2024-2025 financial year, down 34% from the previous year. | BGNES, AFP