Welcome to the Rémy Cointreau Q2 sales twenty-four twenty-five. Please note this conference is being recorded, and for the duration of the call, your lines will be on listen-only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero, and you will be connected to an operator. I will now hand you over to your host, Luca Marotta, CFO, to begin today's conference. Please go ahead. Hello, everyone. As you've seen in the press release, Q2 sales were down 16.1% in organic terms. This performance reflects, first of all, a continued destocking in the U.S. on the back of a persistent weak depletion, and more importantly, below our expectation. Second element, high basis of comparison and clearly a tougher market condition in China, and more broadly for Chinese cluster, Greater China. And third, a soft context of consumption in the rest of the world, alongside a strong promotional activity. Overall, Q2 sales decline is split between a volume decrease of -8% and -8.1% of price mix effects, linked to limited price increases and the outperformance of the Liqueurs & Spirits compared to Cognac. Looking at the overall sales performance by the region, Americas generated a decline of 22.8% in H1, reflecting continued destocking, as said. Depletions are obviously still too low, but every cloud has a silver lining, and we can at least admit that they are sequentially improving. APAC recorded a sales decrease of minus 8% in H1, including a relatively limited decrease in China, which represent clearly the major part, and a weak performance in Southeast Asia, especially for Cognac. Third, EMEA, big EMEA region, was down 18.8%, affected by persistent soft consumer trends and unfavorable weather condition. This was sell-in. In terms of value depletion at group level, the best approximation of final sellout over the past six months, in the US, value depletion were down mid-teens. As compared to pre-COVID, value depletions are flat and out of the VSOP, excluding the VSOP, +45%. In China, value depletions were down low single digits in H1 versus last year, clearly, and up more than 35%, three, five, compared to 2019 to 2020. On top, I have to add that in Q2, value depletions in China were slightly up. However, base of comps last year were quite easy. Last but not least, in EMEA, value depletions were down low double digit versus last year and down mid-single digit compared to H1 2019 to 2020. But excluding Russia, because it's not comparable five years ago, value depletions would have been flat versus five years ago. Overall, at group level, six months value depletions declined by low double digit versus last year, i.e., slightly better than sell-in on a six-month basis. If you remember, end of Q1, it was the other way around. So albeit we remain negative, clearly, on the second quarter, there is a slight small spark in terms of reverse trends, in terms of value depletions comparing to the sell-in performance. On a five-year basis, group value depletion were up low single digit, in line with sell-in trends, which are plus 1.5%. So for five years, quite balanced. To conclude on this very important first slide, considering what's happening and the result, the performances, we have decided to adjust our full year guidance, take into account the persistent low visibility, disappointing sales at the end of Q2, and worse the market condition in China. On page three, I would like to come back very briefly on the main marketing initiative of the quarter, and Éric Vallat, our CEO, will develop the strategic rationale behind them in a more deep way, in deeper way, in a month for the H1 results. Starting with the US, first of all, we have started to reinvest behind the VSOP at 360 degrees to improve its visibility and the conversion rate. Here there's one illustration with a limited edition called My City, that will be activated in four important cities in Q4: Detroit, Atlanta, Chicago, New York. In parallel, we continue, we push through our investment on our core business, Rémy 1738 through the current tour sponsorship of Usher across the US with important activation plan in both off-trade and on-trade. Last, we are preparing the relaunch of Rémy Martin V with a new pack, more modern, more dynamic, a new blend, lower ABV, and a new price position to revitalize volumes. The campaign will be quite offensive and target primarily the new generation of women in the spirit space. Full plan will be live from April next year in two states, and then roll out all over the 2024 to 2025 year. In China, as mentioned, the market is tough for all the industry and more largely, the consumer space. In this context, the objective is clear to leverage our biggest strengths to make our performance as much as possible resilient. Rémy Club is definitely one of them, alongside E-commerce in terms of channel. And then in Europe, we have decided to launch, as an example, our own premium RTD offer in the U.K. as a pilot market with Cointreau, our most relevant brand on the cocktail landscape. It is a very new test, learn and approach, and at a very limited scale and exclusive at the Waitrose retail chain. Now, back to figures. Let's move to slide number four with H1 sales analysis. Sales amounted to 533.7 million EUR, down by 103 million EUR year-on-year, or 16.2% on a reported basis. This reflects from one side, a strong organic decline, a bit more than 100 million, 101.4, which means a -15.9% organic sales decrease in the semester. This performance need to be split between -13.5% of negative volume effect and -2.4% of price mix. Regarding the latter, this is a combination of a neutral price effect and low- to mid-single-digit negative mix effect, linked to the underperformance of the Cognac division compared to the overall group. Second point, a very slight negative currency translation impact of 1.6 million EUR, or 0.3% loss for the semester. The loss was mainly driven by deterioration of Chinese yuan for 1.6 million and Japanese yen for 0.5. But on the opposite side, US dollar was positive in terms of conversion for a limited gain of 0.2, as well as the British pound for 0.4 million EUR. Slide five, the usual performance by division, comparing actual trends out of the performance to five years ago, pre-pandemic, nineteen-twenty H1. I will not detail all the figures, they are all on the spreadsheet, on the slide. But in a nutshell, volume performance is strongly down in Cognac amidst the current US context, while price mix continues to be very strong. Overall, total Cognac sales are now down 10.4% versus pre-COVID, while value depletions are down low double digits at the same time. In parallel, Liqueurs & Spirits continue to generate a significant performance of +38% versus pre-COVID, driven by both volume and price mix. And value depletions trends grew even more than 40% over the same period. So clearly, two different speeds over five years between the two divisions. At group level, this shows now an alignment, as already said, compared to five years ago, in term of sell-in more or less plus one point five, and value depletion at group level, which are now slightly up, precisely plus 1.3%, compared to H1 2020. Now, let's now turn to slide six, to dig into organic trends by region at group level. Let's start with APAC, whose H1 organic sales were down 8%, as said, but up 42.2% on a five-year basis. Let's start with the valorization, so volume value equation. The performance year-on-year is equally split between a negative price mix effect and negative volume effect linked to the Liqueurs & Spirits division. China's sales were down mid-single digit in Q2, representing an increase of more than 80%, eight zero, on a five-year basis, in a market facing tougher market condition, particularly for the high-end segment. In this gloomy market, the only channel which emerged positive was the E-commerce, grew at more than 10% in Q2, representing 25% of sales penetration and of the H1. The overall performance also reflect the strong negative impact coming from Taiwan, Macau, and Hong Kong, as well as softer trends in travel retail in the APAC region, where travelers are back but spend less. In this context of sell-in, of sales, down mid-single digit in China, H1, value depletions group level were down low single digit year-on-year, including, as already said, it's very important, a slight increase in Q2. On a five-year basis, H1 value depletions were up more than 35%. Moreover, considering the better resilience of depletions versus sell-in, our level of inventories remains healthy at the end of September. The remaining part of Asia continued to be affected by tough market conditions in Southeast Asia in Q2, particularly in Australia, Malaysia and Singapore. Meanwhile, at the same time, Japan continued to outperform, even if on a slightly lower trends in Q2 compared to Q1. End of September 2024, APAC accounted for 44% of our group sales, up four points compared to the previous year. Second region in terms of weight, it's Americas. Americas H1 organic sales were down 22.8%, including a negative mid-teens effect in volume. More specifically, in the U.S., sales recorded a very strong decline in Q2, impacted by another round of destocking, given the persistent weakness of depletion. Given the sequential improvements, however, in depletion from Q1 to Q2, level inventories has lowered a bit, is now slightly below five months at the end of the Q2, always comparing to the expectation of the future depletion. On a five-year, H1 value depletion are down now mid-teens% year-on-year and flat versus H1 2019-20, but excluding the VSOP, +45%. In Canada, sales were flat in Q2, supported by Liqueurs & Spirits division performance, and Latin America was down low double digit, impacted essentially by Cognac. End of September of 2024, the Americas accounted for 34%, group sales, down three points. Then we have EMEA. EMEA H1 organic sales were down 10.8%, almost flat compared to five years ago. This year-on-year performance mostly includes a very strong negative volume effect. Since the changes of organization announced last June, we monitor now the performance of this big region with a different split, as displayed on the slide. So first of all, we have the cluster of Europe third party distributor, 3PD, recorded a slight sales growth in Q2, led by Germany, Greece and Italy. In parallel, sellout has slightly improved as well, led by Metaxa, even if the spend per capita remains subdued and weather conditions were unfavorable in the summer. Second cluster, U.K. and Nordics, very strong double digits down in Q2, impacted by high comps and a gloomy economic context. The objective has been to protect our market share in Liqueurs & Spirits, despite the declining categories environment. Benelux and France, third one, we recorded a slight sales decline in Q2, impacted by Cognac, while at the same time, Liqueurs & Spirits showed good dynamics in summer. Then, last but not least, MEA ex-Eastern Europe sales were down strong double digit in Q2, impacted by Nigeria, for instance, which faced some destocking following change route to market, and as well, South Africa, still affected by a highly promotional market and mostly driven by the VS segment. Over the last six months, value depletion in the EMEA region were down low double digit year-on-year and down mid-single digit on a five-year basis. Excluding Russia, value depletion would have been flat compared to five years ago. Overall, considering this comparative performance, level of inventories remains healthy in the region. End of September, EMEA region accounted for 22% of group sales, down 1 point compared to the previous year. Now let's switch to slide number seven, the analysis by division, starting with Cognac. Cognac posted a H1 organic decline of 17.5%, reflecting a decrease of 14.2% in volume and negative price mix of 3.3. At the end of summer 2024, Cognac division accounted for 64%, two-thirds of our sales, down 1 point compared to the previous year. Let's start with APAC, the most important region at this stage for Cognac. In China, inside APAC, sales, which represent most of our Cognac exposure in APAC, were slightly down in the Q2, affected by high comps. China was up at more than 90% versus Q2 of 2020, tougher market conditions, domestic market and in travel retail as well. In a nutshell, consumer confidence remains a bit low. Cash pressure are affecting wholesaler, and the luxury shaming waves indirectly on the high-end segment. However, on the value depletion side, we were slightly up, I repeat, slightly up in the Q2, year-on-year, from a slightly more favorable basis in terms of comps, and were mostly driven by Rémy Club, which overperformed up mid to high single digit year-on-year on this period. On a five-year basis, value depletion for China were up plus 60%, six zero. On-trade is once again the most affected channel in this current context, while-... And this is something very specific in which we are very proud. Our e-commerce was up more than 10% in the period. Hong Kong, Taiwan, and Macau were weak, impacted by high comps, destocking, and we can call it wait-and-see attitude before the tax decrease in Hong Kong. Rest of Asia was down a very strong double-digit, particularly in parts of Malaysia, Australia, and for Cognac, specifically in Q2, Japan as well, and softer trends for Chinese tourism in these kind of countries. Second region for Cognac, the Americas. In North America, Cognac sales were down by very strong double-digit in Q2, still impacted by the destocking on the back of lower than expected depletion and a very high promotional market. Q2, U.S. value depletion were down mid-teens year-on-year and minus ten versus Q2 2019-20, showing a negative performance, but a sequential improvement compared to the Q1, mainly led by 1738. Considering all that, the level of inventories on Cognac is now slightly below five months in terms of days of coverage. Twelve months value depletion, you can see in the slide, includes three points on negative price mix effect year-on-year at the end of September, and but on a five-year basis, price mix is up sixteen points. Finally, Latin America sales were down a very strong double-digit in Q2, impacted by a strong, fierce promotional competition. Third region, in terms of weight for Cognac, EMEA. Cognac sales were down a strong double-digit in Q2, mostly impacted by Nigeria, change in RTM, route to market, as said, and tough market in South Africa. U.K. continued to face high comps ahead of the rise in excise duty last year and fierce promotional environment this year. Europe third party distributor, Europe 3PD, improved sequentially in Q2, led by Germany, Greece, and Italy. This was in terms of sales, but EMEA value depletions were down mid-teens year-on-year in Q2 and down strong double-digit compared to Q2 2019/20. Let's now turn to slide number 8, a word on Liqueurs and Spirits division. Liqueurs and Spirits division was down minus 12% on organic basis in H1, including a very strong decline of minus 12.6% in volume, and a slightly positive price mix effect of plus 0.6. End of September, Liqueurs and Spirits accounted for 34% of our sales, up one point compared to the previous year. Now, let's review the performance of the division by region, and here, number one in the weight is Americas. North America says we are down a low double digit in Q2, still impacted by greater caution by wholesaler, from the wholesaler willing to maximize their global inventories footprint in a slowing market. However, the underlying trends show some resilience compared to the market. Cointreau Q2 U.S. value depletions were up low single digit year-on-year and approximately plus 65%, two -thirds better than Q2 2019 to 2020. The Botanist, our gin, showed also some positive trends year-on-year, +10% versus last year, and almost 100%, +95% versus Q2 2019 to 2020 in terms of value depletions. Besides all that, price mix was down three points versus last year in the last twelve months period ending September 2024, but up twenty points on a five-year basis. In parallel, Latin America sales were up strong double digits in Q2, led by Cointreau and Monin. Clearly, for Latin America, Liqueurs and Spirits division was more dynamic than Cognac. Second region in terms of weight for Liqueurs and Spirits is EMEA, where sales were slightly up in Q2, showing a strong improvement versus Q1, led by France, Germany, Greece, and Spain. In parallel, value depletions were down low single digits versus last year in Q2, but plus 45% versus five years ago. Inside all that, in terms of countries, while Benelux shows a very strong growth led by Cointreau, the U.K. faces high comps and in declining market, where the group has protected this market share. In parallel, Europe third party distributor cluster showed some good dynamics led by Metaxa and Cointreau. Eastern Europe was impacted, however, by some destocking following changes in route to market in Czech Republic. Third region by weight, APAC. In APAC, we have clearly China posted a very strong double-digit decline in Q2, impacted by continued destocking in whiskeys and a weak end demand, mainly from a younger generation. Overall, value depletions was slightly positive, however, versus last year, increased by 15% versus five years ago. So it's really an issue of destocking. Rest of Asia posted a mid-single-digit increase in Q2. Inside that, while Southeast Asia was flattish, facing sluggish markets, market consumer condition, mainly in Australia, Japan was booming from this division, driven by Bruichladdich and Cointreau. One last small word on Group Brands, which now represent 2% of the group sales, stable year-on-year. They were down 25% in H1 or minus 18.3% versus H1 19/20. To conclude, page six, before our Q&A session. On the back of Q2 sales, we showed disappointing trends, and considering the persistent lack of visibility and worsening market condition in China, we have decided to adjust our full-year guidance as follows: On sales, we now expect another year of double-digit decline in organic terms for the full year. COP margin, operating profit margin, we now expect an organic deterioration that will be partially offset by the launch of another cost cutting plan, totaling over EUR 50 million, 50 million, in terms of impact this year. This new guidance is based on the following assumption in terms of region. In Americas, we do not expect any recovery in sales before Q4 2024-2025, at the earliest. In APAC, we should record a sequential sales deterioration in H2 compared to the H1. EMEA, we should continue to face sluggish consumer trends in the second part of the year. To manage the top line pressure, clearly, which is important, we have decided, I repeat, on top of the ongoing strict cost policy, to launch another cost cutting plan of more than EUR 50 million to protect as much as possible our COP margin. For the sake of clarity, this 2024-2025 guidance for this year takes into account the recent MOFCOM decision based on the information that we have as of today. The impact of this decision in terms of profit and loss for 2024 to 2025 is marginal for us. Lastly, we reconfirm our 2029-2030 midterm guidance. But let me be clear on that. 2024 to 2025, as said, will be a year of transition, with highlights including finalization of the stock in the Americas, and starting from 2025 to 2026, we'll make a resumption of the trajectory set for 2029 to 2030. 2029-2030 is confirmed, and starting from 2025 to 2026, there will be a high single-digit annual growth in sales on average on an organic basis, progressively, and a gradual progressive organic improvement in current operating margin. These are the 2029 to 2030 guidelines. It doesn't mean that according to quarters, years, symmetry between top line and bottom line will be assured on the same basis. I repeat, high single-digit overall growth in sales on average, starting from 2025 to 2026, and a gradual, month after month, quarter after quarter, improving current operating profit, but with no guarantee of the same symmetry. Thank you for your attention, and now I am happy to answer to your question, but before I have to drink, because I have no more breath. I have to... I need water. Thank you. Thank you, Mr. Marotta. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your questions, please press star two. Please note to limit your questions to a maximum of two only. We will take our first questions from Edward Mundy, from Jefferies. Your line is open. Please go ahead. Morning, Luca. So two questions, please. The first is on, US Cognac, where I think you're signaling that the Q2 depletions, while still negative, are slightly better than the first quarter. Could you perhaps provide a bit of color? What's behind that? Is it the VSOP relaunch or the new commercial organization? And sort of how sustainable you think this sequential improvement in the US, may be. And the second question is around the guide. You know, China sounds okay in Q2, you know, US slightly less bad, and appreciate visibility is, you know, very low, but, are you trying to signal that the timing of recovery is being pushed back versus your prior expectation? Or are you trying to signal that H2 organic sales will deteriorate versus H1? A bit of color on the top line, and then on the same question on the guide, you know, from a profit standpoint, appreciate that there are still some cost savings from last year that need to come back into the base, but perhaps you can provide a bit more detail around the EUR 50 million of cost savings. And do you think operating deleverage will be worse than fiscal 2025, you know, relative to fiscal 2024? Thank you for your question. Let's start with the VSOP relaunch. The plan it is running through started with the price reposition specific in some states, as you remember, up and down, following the strategy of repositioning that have been decided, $49.99. It is starting to bear some initial fruits, but need to be followed by also for a specific activation and marketing initiative to be coherent with, there's not only price, there needs to be assisted by some activation and focus on the field. As said, in the last two years, we are a bit forgetting to break that VSOP, focusing on more strategic what we consider at the time much more strategic SKUs, like 1738 and XO and up. So it is running. It is not yet totally visible end of Q2, but to give you some example, first sign of exit rate on October in VSOP are showing some positive depletion on VSOP overall in all US. In some states, since July, it is the case. Some important large states like Michigan, the states where we're more affected by this price misalignment, growth has been better even before now. Not yet visible on a global basis, it will be a little bit longer, but month over month and week after week, we are seeing some positive sign. In terms of guidance, of the top line, of the H2, at this moment, we can be much more precise, because otherwise we'll precise a fork, with specific number. So, what is sure that, in our forecast, we think that Q3 will be the toughest quarter, and Q4 should see a bounce back, at least for the U.S., in terms of top line. I'm not committing Q4 will be positive for the group at global level, but for sure, I think, and we can commit that the Q4 in sales for the U.S. will be positive, also by the fact that the comps. We have to remember last year in Q3 we made a huge performance of sell-in in the US, and this plays a role in term of comps. Where would we stand at the end? Will we stand in term of top line qualify this double-digit? We will have many more occasions in the future to be able to precise that. So far, this is our assumption. In term of cost base, the EUR 15 million is a combination of all nature of cost. I will not be precise today, because it is sales and trends of depletion to try to understand what's happened to that top line for the near future. I'll be much more precise end of November for H1 result, but I can say to you already that is a combination on the cost link to the manufacturing, supplying, A&P also, to try to reset the base considering the top line. Ratio versus sales will remain a very high level compared to our history and compared to peers. I can assure that. I can commit already now on overheads that we will be able, through this cost saving plan, to offset the EUR 30 million of temporary cost reversal that we have, and overheads at the end of the year will be flattish at worst, so maybe also slightly negative. Consider the context after EUR 145 million, more than 50, which we are committing now; it's very important. But as said, our business model is made to support sales that needs to grow high single digit. At one point, cost saving will not solve the operating margin equation, because the top line impact is clearly material if you combine 2023, 2024 and 2025. Great. Thanks, Luca. Thank you. We will take our next question from Olivier Nicolai from Goldman Sachs. Your line is open. Please go ahead. Hi, good morning, Luca and Celia. Got two questions. First of all, on the U.S., I mean, if we take a step back, the Cognac category is about down 20% in volumes compared to before COVID, and that's more than most of the other spirit categories. So what do you think the Cognac players, including Remy, of course, are, have missed and should have done differently, but do you expect Cognac to recover in the long run, its relative share, and how? And second question, I know it's sales update, so I guess I would love to ask this one perhaps in a month time for more details, but Remy has a strong balance sheet. So first of all, can we expect the cash conversion ratio to go back up significantly this year? And, how should we think about the potential for share buyback, considering your current valuation? Thank you. Thank you so much. So, once again, even if the cyclical impact is lasting quite long, much longer than expected, we don't think it's structural. So we think the Cognac category is still desirable. All surveys, all independent surveys are showing that, everybody say that is the time lag, this time frame negative performance is lasting more than expected. Also, you have to consider that we are not dealing direct with consumers, so there's a wholesaler trade-off inside, and the cash pressure and high interest rates are playing a role in term of arbitration of stocks. We don't think that we can modelize a Cognac category for the next, at -24.5% in the next five years. So we don't see a huge shrink of the Cognac category. It is this momentum, which is quite complicated for us, even more than our peers. How to turn it positive is that we need to be consistent on our pillars, switch from a more brand awareness game that was the case some years ago, to enter SKU by SKU, line by line, a bit more also analytical and commercially speaking, entering specific strategy, as we have done for the VSOP, 1738, XO, strategize that by cluster, and, if you want, even much more operational work than expected two, three years ago, to be able to reactivate the flows. We don't think that this switch is structural. We think that continuing to remain strictly focused on our pillars on strategic footprint, improving that on some tactical activation without deviating from the, the strategy, without making compromise on the long term, I think we will get rewarded. It is painful so far, I admit, and it is very painful for us, for sure. In terms of Rémy's strong balance sheet, nearly two years in a row of declining top line at the end, declining EBITDA, will have an impact on the A ratio, but everything equal, so without considering any exceptional events that I don't know so far, we don't see this A ratio at the end of the fiscal 2024, 2025, be up in a very significant way. We are still, and we will still, in the lower tiers of comparison in terms of A ratio compared to our peers. So it's very solid. In this context, clearly, board of directors will challenge ourselves, me, Éric Vallat, to what we can do with this available money that we have. You remember that also we increased the maturity of the strategic liabilities one year ago. It is a share buyback, it is a specific acquisition, it is an increase of the CapEx capacity to be able to even more be prepared to moment of the rebound, because the rebound technically will be very strong when it will happen in the US, also mechanically. So it will be a mix of that. But the important point to highlight, no panic. A ratio is and will be under control, even considering the worst hypothesis for 2024, 2025. Thank you very much. Thank you. We will move to the next questions from Trevor Stirling from Bernstein. Your line is open. Please go ahead. Morning, Luca, and morning, Celia. Two questions for me, please. The first one, maybe just a little bit more color on the China tariffs, Luca. It was phrased in the response as a deposit. Are you treating the tariff as a cost or, and so hitting the P&L, or something that is a cash impact only? And the second question then around the US and, you know, the snapback and when it might come, and it's clearly low visibility, but I just wanted to check one thing, which is, your Americas depletion level, which you're saying is basically flat versus 2019, but shipments down 25%, so that's the scale of the opportunity, is that 25% gap in the Americas. Is that right way to interpret things? Thank you for the two questions. So thank you for the first question. So, because I think need to be clarified. China tariffs has been confirmed, and starting from eleven October, every time through an intercompany transaction, you send some goods in to China, and you pass the border in terms of a tariff impact, you need to cash advance and bank guarantee are not. We ask for that, but then they don't want bank guarantee, they need to pay. So the impact it is initially cash. So it's credit to bank accounting. The P&L is hit when this new bottle, that now is supposed to support to be being hit by 38.1% of additional tariff increase, if they will be confirmed, will be recognized in P&L only when this bottle will be sold from our entity, Rémy Cointreau China, to a customer. Can be a wholesaler, can be through the boutique, a final consumer. So there is a decorrelation, and every company also clearly has an intercompany stock already there to be able to support the flows of the demands in next coming months. That's the main reason why, in terms of impact this year in P&L for us, is marginal. At the same time, also, if it is not the same saving in cash for ourselves, it is not so big at the same time for the 2024, 2025. On that point, the worsening market condition, the fact that our guidance for China has switched in terms of China from a flat plus to a double digit decrease for the year, means that you need to sell less volume, so there is a mathematical saving for the wrong reason on that, on these topics. So on average, and I want to give you more color in terms of months of the difference between cash and PNL, every company has its own, but there is a delay between the impact on cash, negative one, and the impact on PNL. With some complications in terms of country, because you have to understand, if you follow bottle by bottle, cluster by cluster, it is quite a mess. So thanks for your question, because it is a technically important point. In terms of the US, mathematically speaking, you are quite right, but the mechanics of the rebound is influenced by the fact that VSOP was playing a key role, and now is playing less of a role in terms of footprint of the future depletions, this is taken into account. But on the first or second quarter, that will appear, the impact on restocking can be even higher than 25%. So mathematically speaking, you are right. It will not go in this direct way because the dynamics of the SKUs representing the core of the pyramid of the future sales are very different compared to five years ago. Brilliant. Thank you very much, Luca. Thank you. We will take our next questions from Simon Hales, from Citi. Your line is open. Please go ahead. Thank you. Hi, Luca. Can I just sort of follow up on the China Cognac sort of tariff debate a little bit, please? Could you just provide a little bit more clarity as to the scale of the headwind that you think your business would be facing on a 12-month pro forma basis? I appreciate there's a difference between the impact on cash and the PNL timing, but on a rolling 12-month basis, how should we think about the overall headwind that you're facing? I imagine it's a little bit over EUR 100 million. And then just to clarify on that, as we head into fiscal 2025, 2026, I think you said in your remarks and in the statement, that you do expect the business to return back to high single digit organic sales growth next year, with some improvements in profitability. Are you fully taking into account, therefore, the impact of those China tariffs in that guidance for next fiscal year? And what actions will you be taking to mitigate the headwinds on the ground? Thanks for your easy question. So, I wouldn't, it, I will not shoot a number. I wouldn't don't give you a number because everything is clearly ongoing. It's been confirmed, but it's not yet definitive. It's not an ultimate act that will be applied at 100%. We continue to think that it is not, it's incorrect. We think that we are not dumping. So the thing that we can say is that, for us, clearly, China is more important than for my, for our peers. So the impact is more important, more severe for us than for Martell or Hennessy or other operator touched by this measure. So we are already prepared to mitigate. I repeat, mitigate the impact of this measure. It will be confirmed in terms of survey studies to understand what is the elasticity and volumes linked to the price increase, that for sure, we will be obliged to pass through. At what time, what extent, what SKUs, I will not comment on that. This is part of our strategic engine, to try to navigate this in this very complicated timing. Prices will not be the only things. So we'll be analyze all the other elements of our asset in China and all over the world to mitigate that. So starting from the manufacturing, operational side, including A&P and cost base. But once again, with the strong will of the group, that is, not yet something that's written in stones forever, so we will not do some stupid and very strong reorganization at the worldwide level to compensate that. So it will be a combination measure to mitigate the impact of the China tariff if it's confirmed, considering also the delay between cash and PNL impact as said. I will not shoot a figure, I repeat, it's more important than for our peers. That's the reason why it's even more serious for ourselves. So, your second question, let me, it's clearly calling for a clarification. I thought I've been clear in the last part of my prepared speech, but, probably not. Today, it is H1 sales, not full year or half year result, and we adjusted the guidance for 2024, 2025. This is not the 2025, 2026 guidance. We confirm at the same time, that the trajectory of 2029, 2030, is still confirmed. It is more than possible because of what we advanced, because the effect that will be witnessed in our assumption, when the restock in the US will be there. And as we said, starting from 2025, 2026, you will see the first tool of the engine of our profit of growth, which is the top line, will be back to high single digit. And bottom line, if you read the centers, is a gradual improvement along the year. Does it mean that we do not grant a perfect symmetry into 2025, 2026 within top line and bottom line. What we guarantee is that a recovery to profitability all along the remaining five years of the plan, and starting from 2025, 2026, a top line growing according to the normal growth of the business, which is high single digits. No guarantee of symmetry between top line and bottom line. We'll be more precise, clearly, when 2025, 2026 guidance will be out, so six months, nine months. But don't take that for granted in terms of symmetry, that's not what we are writing there. There is a difference, implicit difference between gradual and a statement in terms of top line. Got it. But the 2025 to 2026 expectation that you've just outlined does take account of the fact that Chinese tariffs would be applied. You're not assuming that they may not be applied in that guide? Once again, Simon, we're not shooting a 2025 to 2026 guidance. 2024 to 2025 does take into account, 2029 to 2030 is taking that into account. The five years in between are taken into account. Quarter, years, semester, I don't comment on that. For 2025 to 2026 specifically, but it is implicitly, yes, but for the five years, I'm not saying that in 2025-2026, the impact of tariff is applied, will be totally compensated, offset. We are not saying that. Okay, thanks, Luca. Thank you. We will move to the next questions from Jane Cross, from BNP Paribas Exane. Your line is open, please go ahead. Good morning, Luca. Good morning, Celia. Couple of more near-term questions from me, and the first one is just on China. Have you seen any early signs of impact from the news of the China stimulus package, particularly in the on-trade channel? And then, in the U.S., in the Liqueurs & Spirits division, you've obviously had impact of further destocking in the second quarter. I just wonder if you could comment on whether you expect that to continue into the second half. Thank you. Thank you for your question on China. I will use your question also to give you some colors on Mid-Autumn Festival, because it is very important. So to answer to the rest of the stimulus in terms of macro economic impact, I'm not qualified to answer to that. I don't know if there is already some sign. I think I can tell you that... Let me elaborate on that. We have understood that despite that set of result and the updated guidance, you don't have to throw everything out of the window of this publication. We have some strong points there. Clearly, Mid-Autumn Festival was a negative one, but clearly better than competition, without being swaggering, without being very bullish and showing the muscle. So, but we have to be rational. So it is an impact on your own trade or the stimulus. Frankly speaking, I don't think, but I don't know. But what I'm saying is that despite the Mid-Autumn Festival was a negative one, there are some very important positive points to highlight. Headwinds are very strong, confidence remains low, cash pressure, but club was up, low double digit on sales, and even more, high single digit on depletion in Q2, and even more in March. The more you go through the chain, the performance better. So retailers experience better performance for us, better than competitors, at point of sales compared to tier two, compared to tier one. Sell-in has been depressed compared to the final depletion. It is a small spark, if you want, but it's a consistent one, at least in comparative level, because China, it is clearly highlighted and finger pointed by everybody like a total disaster. It is negative for us. We are adjusting the guidance from flat plus to double-digit negative, but the fundamentals of the compounders are better than expected for us. Even if we are in negative momentum in China, it's better. So it gives to ourselves a positive signs. E-commerce, e-commerce was plus 10 on sell-in, even more on sell-out, on the part of B2C, D2C, it was more 43, more 35 on online, more 43%. So once again, I repeat, every time we are in touch with the final consumer in China, we are beating expectation, we are beating competition. Not enough to be totally positive. You see, we are downgrading the hypothesis clearly, but not everything is to be thrown out of the window, and you can capitalize on that. Confidence being there and situation being more on a peaceful mood, the taste and the appetite of the consumer for our products is still very present. We are not seeing, so far, touching wood, a ban from our consumer or the emotional bond is more than ever present. Also in banquet, that for us are not in on trade, are in off trade, more direct lines have been increasing. Clearly, okay, we can say there is a downgrade in terms of product with more Club than XO, whatever, but we are not witnessing minus 30%, minus 25%, minus 50%, yeah? So once again, let me be proud of something there, we are very proud of that. And back to your question, I don't think it's stimulus that is driving that. It's the strength of the brand, and once again, let me say a very positive word for the Chinese team. We think that we have a very, very strong team, thanks to them. U.S. Liqueurs & Spirits was your second question. You see that there's been some improvement. Depletions are even more clear with The Botanist gin, okay, it is not Cointreau. +100% over four to five years, and then +10%. In gin, where this is not a very highlighted category in the U.S., high price. Kudos to our brand, and kudos to our teams that with the new organization is able to tackle more directly the point of sales, the chain, less on a geographical basis and more on a direct approach. Situation is very complicated. We are a bad set of figures, but once again, we don't want to throw it out everything, because we have to capitalize on our strengths. Liqueurs & Spirits, we're progressing on that, and our commercial execution in the U.S. is clearly improving very much. They're doing a hell of a job to try to fight on a very complicated situation. As I said, that would be even more clear, the performance of the Cognac, even more for us, that were identified the pure Cognac period, is overshadowing the logics of some wholesalers on some states, on some cases, that are considering that Cointreau, being part of the Cointreau, needs to be treated like a Cognac. Okay, it's all a part of our job to be able to explain that, but we are clearly impacted by that. So the cash pressure, the leveraging a bit, being less important, maybe after the election, also, the global climate a bit more euphoric, and the comps are improving a bit. I think that we can be back to better performance. I'm not trying to sell anything. I'm not a salesman, but after 45 minutes of explaining a very complicated situation and talking about profit warning, I want to put the church in the middle of the village once again. The same thing we can say for Europe team. Europe team is doing a hell of a job, even more for Liqueurs & Spirits. Really kudos to our teams for the fighting spirit they have, because it's not easy after six quarters that are negative, to continue to have the same fire in ourselves. This is a strength for Rémy Cointreau. The first strength is not only to be there on the long term, a shareholder that is there, is very calm and quiet compared to other situation, to let the team work with serenity, is that we have a very strong team all over the globe and including France. Sorry for this passionate elocution. Thank you, Luca. Thank you. We will take our final questions from Chris Pitcher, from Redburn Atlantic. Your line is open. Please go ahead. Good morning, Luca. Thank you for the question. Just one from me. Could I just try and understand why the focus on protecting margin? You mentioned that the fact that there's a small spark. Surely this is the time to be investing to ensure that that small spark grows, and particularly given the weakness we've seen in the U.S. and China, this is the time to be broadening your route to market. Are some of the new route to market investments being delayed because of the current cost savings program, or are you still trying to build out your network? I'm just trying to marry off the tension between ensuring the recovery happens and protecting margin. But why are you protecting margin? Trying to? Thanks for your question, Chris. Because being a company that, cashless, there is a certain level of global EBITDA that need to be respected. So when you say protected margin is the consequence in terms of... But the, the more correct phrase or sentence could be also, there is some level, coming back to the question of Olivier Nicolai of Goldman Sachs, of, debt to, debt to operating profit, ratio, that need to be mastered as well. So it's a combination of, conviction that every single brands need to have the, the pure payback on terms of the initiative they are doing. In this moment, also, we cannot say... If you tell me, "I give you one hundred million, and I, I'm not able to grant you what kind of return you have in the top line." So it's a combination of that point, that the lack of visibility makes that additional investment is not one hundred percent giving additional return. On top, more than our peers, we need to have certain level of EBITDA, to avoid to be in a more complicated situation, net debt ratio compared to the operating profit, that will drive to some exceptional decision, maybe lowering capital expenditure or buying less eaux-de-vie. This is not what we want to do. For protecting that, the early strategic leverage of today, we need to be very selective. We need to select the priority of investment very much. And today, putting additional money on A&P does not grant 100% the proper return. Yeah, maybe just following up on that question, are you still—have you paused the sort of expansion of sales resources? Not just A&P, but sales resources into newer markets, so that's sort of when the recovery comes, then you will build out. Is that- Yep. Yep. Yeah, the answer is yep, in a different way, following different channel, and in a world that is changing, closing maybe a bit. We are clearly not only on a brand strategy, but also on a route to market strategy, and a new territory in which we need to expand. So, the cost cutting will not be on this part of strategic weapons to prepare the future. Thank you very much. Thank you. That's all the time that we have for questions. I will now hand it back to Mr. Marotta for any additional or closing remarks. Please go ahead, sir. So, I would like to thank you for your attention today. It was clearly a very intense conference call. It was meant to be safe, but it was a little bit all the way around. We talked about phasing and comps, a lot of that, but situation calls for that. So see you end of November with Éric Vallat, our CEO, will be there also to illustrate to you what's happening even more on a strategic way, and less added in term of figure, pure figure. From now on, tell you that I was proud to present this figure, even they are complicated, because in this context, I can assure you that we fight on a single battle, and the motivation and the sacrifice is here more than ever. Thank you so much. Have a nice day and, take care, you and your families. Thank you. This concludes today's call. Thank you for your participation. You may now disconnect.