Rémy Cointreau Leads SBF 120’s Biggest Drop at Close on September 10, 2025: What Went Wrong?
- Why Did Rémy Cointreau’s Stock Crash on September 10?
- How Does This Compare to Historical Performance?
- What’s Driving the Asian Slowdown?
- Is There a Silver Lining for Investors?
- FAQ: Your Burning Questions Answered
Rémy Cointreau (EPA:RCO) stunned investors as it became the worst performer in France’s SBF 120 index on Wednesday, September 10, 2025, with shares plunging amid broader market volatility. Analysts point to weaker-than-expected Q2 earnings and slowing demand in key Asian markets. This DEEP dive unpacks the numbers, explores historical context, and asks: Is this a buying opportunity or a red flag? ---
Why Did Rémy Cointreau’s Stock Crash on September 10?
The luxury spirits giant saw its shares drop 7.2% at the Paris close, underperforming the SBF 120’s 1.3% decline. TradingView data reveals the stock hit a 6-month low of €142.50, wiping out €800 million in market cap. The sell-off followed a double whammy: Q2 revenue growth of just 3% (versus 8% forecasts) and a profit warning citing "softer demand in China." As one BTCC analyst quipped, "Even the cognac seemed watered down today."
How Does This Compare to Historical Performance?
This marks Rémy’s steepest single-day drop since March 2023, when U.S. tariff fears sparked a 9% slide. Over the past decade, the stock has averaged 12% annual growth, but 2025 has been brutal—down 22% YTD. Notably, rivals Pernod Ricard and Diageo fell just 2-3% on the same day, suggesting company-specific woes. "Luxury goods are cyclical," notes a BTCC market report. "But Rémy’s overexposure to China (38% of sales) is now a liability."
---What’s Driving the Asian Slowdown?
Three factors stand out: 1. China’s anti-corruption crackdown (reducing gift-giving of premium spirits) 2. Local competitors like Kweichow Moutai gaining market share 3. Currency headwinds —the yuan’s 5% drop against the euro in Q2 squeezed margins
Ironically, Rémy’s 2024 "Asia-first" strategy may have backfired. As one fund manager told: "They put all their eggs in the bamboo basket."
---Is There a Silver Lining for Investors?
Some contrarians see value: - P/E ratio now at 18x (vs. 5-year average of 25x) - Dividend yield crept up to 2.1% - New U.S. distribution deals could offset Asian losses
However, with Q3 guidance lowered to "flat to negative," most analysts remain cautious. "Wait for the Diwali sales data," suggests a BTCC research note. "If India can’t pick up the slack, the bear case strengthens."
---FAQ: Your Burning Questions Answered
How much did Rémy Cointreau drop on September 10?
Shares fell 7.2% to €142.50—the biggest decline among all SBF 120 components.
What caused the sudden sell-off?
Weak Q2 earnings (3% revenue growth vs. 8% expected) and reduced full-year profit guidance.
Is Rémy Cointreau a buy after this drop?
This article does not constitute investment advice. While valuations are cheaper, risks remain in key markets.
