Market ConditionsExcess cognac inventory and negative depletions in the US, retaliation risk on duty taxes in China and overall weakness in EMEA are the main short-term headwinds.
Sales Performance1Q25 organic sales growth came below expectations at -15.6% driven by Liqueurs & Spirits (all regions), while the decline in Cognac organic sales was -12.2% (better-than-expected driven by flat China).
Taxation ImpactThe recent tax implementation by Chinese MOFCOM is another setback.