The Remy Martin Cognac maker, which last month appointed a new chief executive officer, scrapped its targets for the 2029-30 financial year. This year, it forecast organic sales growth returning to a mid-single-digit rate. 

The shares fell as much as 3% in early Paris trading, bringing the decline over the past year to about 46%.

Remy and rivals like Pernod Ricard SA are facing challenges that include the suspension of duty-free sales channels in China and the prospect of escalating trade tariffs in the US. Organic operating profit fell about 31% in the year ended in March, the Paris-based company said Wednesday.

The company had planned to return to high-single-digit sales growth by 2029-30, a goal it initially set five years ago. The decision to abandon the target coincides with the arrival of Franck Marilly, 59, a former Chanel executive who takes over as CEO later this month and will set his own strategy, the company said. 

The withdrawal of the target shouldn’t come as a surprise, Jefferies analyst Edward Mundy said in a note.

Marilly’s appointment comes after Eric Vallat said in April he would step down this summer after a turbulent period at the helm. 

Along with duties, Remy has also been hit by continued destocking in the US, a market affected by slowing consumption. 

Remy estimated the potential increase in tariffs in the US and China would have a maximum impact of €100 million ($114 million) on current operating profit this financial year. The company said it can mitigate 35% of this, lowering the likely profit hit to €65 million at most. 

Excluding any customs duty increases in its key markets, Remy expects current operating profit to increase by at least a high-single-digit percentage. 

Marilly is a trade adviser to the French government and analysts say that role could help him navigate talks with China over the anti-dumping probe.