Rémy Cointreau confirms it is ahead of
schedule for 2030 strategic roadmap
Sales, Gross Margin and Current Operating
Margin reach all-time highs
- Gross margin: 71.3%, up +2.6 percentage points on an
organic basis1 (+4.0 points from 2019-20)
- Current Operating Profit (COP): €429.6 million (+16.2%
on an organic basis), setting COP Margin at 27.7% (+1.4 points on
an organic basis and +5.0 points compared to 2019-2020)
- EPS: €5.79, up +37.5% as reported (€5.85 excluding
non-recurring items)
- 2023-24 objectives: stable sales and profitability on an
organic basis, reflecting normalization of consumption in the
United States (above pre-pandemic levels) and a steep rise in China
and the rest of the world.
Regulatory News:
Rémy Cointreau (Paris:RCO) reported consolidated sales of
€1,548.5 million in 2022-23, up +10.1% on an organic basis (and
+43.6% compared to full-year 2019-20). This strong showing reflects
steep gains from in Price-Mix (+10.1%), in line with the Group’s
value-based strategy, and steady volumes.
Current Operating Profit came in at €429.6 million, a
+16.2% organic rise (+76.8% compared to full-year 2019-20) and
+28.5% as reported. Current Operating Margin improved by
+1.4 points on an organic basis to stand at 27.7% (+5.0 points from
2019-20).
Key figures – in €m
(unless otherwise stated)
2022-23
2021-22
Reported
change
Organic change
vs. 2021-22
vs. 2019-20
Sales
1 548.5
1 312.9
+17.9%
+10.1%
+43.6%
Gross Margin (%)
71.3%
68.6%
+2.6 pts
+2.6 pts
+4.0 pts
Current Operating Profit
429.6
334.4
+28.5%
+16.2%
+76.8%
Current Operating Margin (%)
27.7%
25.5%
+2.3 pts
+1.4 pt
+5.0 pts
Net profit - Group share
293.8
212.5
+38.3%
+25.4%
+123.2%
Net margin (%)
19.0%
16.2%
+2.8 pts
+2.3 pts
+6.6 pts
Net profit – Group share excl.
non-recurring items
296.6
228.1
+30.0%
+17.7%
+107.2%
Net margin excl. non-recurring items
(%)
19.2%
17.4%
+1.8 pt
+1.2 pt
+5.7 pts
EPS Group share (€)
5.79
4.21
+37.5%
+24.7%
+119.2%
EPS Group share excl. non-recurring items
(€)
5.85
4.52
+29.3%
+17.1%
+103.5%
Net debt /EBITDA ratio
0.84x
0.79x
+0.05x
+0.05x
-1.02x
Chief Executive Officer Eric Vallat
commented:
“Rémy Cointreau had a record year, and we have increased our
advance on achieving on the 2030 strategic roadmap. This strong
showing confirms the relevance of our value-based strategy, which
is underpinned by a “Drink less but better” trend. It also reflects
solid gains made in achieving our four strategic priorities and the
rising desirability of our brands. With the normalization of
consumption in the United States amplified by high basis of
comparison in the first half and our drive to reduce inventories we
expect sales and profitability to hold steady in 2023-24 on an
organic basis. We are heading into the new year with confidence and
resolve, and we anticipate a steep second-half recovery in the
United States combined with a new year of buoyant growth in the
rest of the world, particularly in China.”
Current Operating Profit by division
In €m (unless otherwise stated)
2022-23
2021-22
Reported
change
Organic change
vs. 2021-22
vs. 2019-20
Cognac
405.2
323.0
+25.5%
+14.7%
+80.2%
As % of sales
36.8%
34.1%
+2.8 pts
+2.2 pts
+7.8 pts
Liqueurs & Spirits
48.1
35.5
+35.6%
+18.1%
+16.6%
As % of sales
11.5%
10.6%
+0.8 pt
-0.1 pt
-3.4 pt
Subtotal: Group brands
453.3
358.4
+26.5%
+15.0%
+70.7%
As % of sales
29.8%
28.0%
+1.9 pt
+1.1 pt
+4.5 pts
Partner brands
0.1
-
-
-
-
Holding Company costs
-23.7
-24.0
-1.2%
-1.7%
+17.5%
Total
429.6
334.4
+28.5%
+16.2%
+76.8%
As % of sales
27.7%
25.5%
+2.3 pts
+1.4 pt
+5.0 pts
Cognac
Sales at the Cognac division grew +7.6% on an organic
basis (+41.3% compared with 2019-20), including a -9.3% decline in
volumes and a substantial +16.9% gain from an improved Price-Mix.
This strong showing reflects robust growth in the APAC and EMEA
regions that offset the slight retreat observed in the Americas,
where normalization of consumption and a high basis of comparison
were in play.
Current Operating Profit rose +14.7% on an organic basis
to total €405.2 million, for a +2.2-point organic rise in Current
Operating Margin to 36.8%. The excellent performance reflects a
marked rise in gross margin and very good control of overhead
costs. At the same time, the Group reported a sharp rise in its
marketing and communications spend, notably in China and the United
States, where Rémy Martin kicked off a major campaign at the
Superbowl.
Liqueurs & Spirits
Full-year sales at the Liqueurs & Spirits division
were up +18.7% on an organic basis (+54.1% compared with 2019-20),
including volume growth of +8.3% and a robust +10.5% increase from
the Price-Mix effect, with strong momentum across all regions. All
portfolio brands contributed to this remarkable performance, driven
by the rising popularity of mixology and investments to boost brand
recognition and appeal over the past three years.
Current Operating Profit stood at €48.1 million, up
+18.1% on an organic basis. This set Current Operating Margin at
11.5% (stable on an organic basis). As anticipated, trends
reflected persistently high marketing and communications outlays to
lay the groundwork for tomorrow’s growth, along with a decline in
gross margin linked to rising production costs. That decline was
partially offset by increased sales prices and reduced
overheads.
Partner Brands
Full-year sales of Partner Brands were down -5.3% on an
organic basis (+8.5% compared with 2019-2020), reflecting a high
basis of comparison with the first half of the year, notably in the
Benelux.
Current Operating Profit stood at €0.1 million in
2022-23, unchanged from 2021-22.
Consolidated results
Consolidated Operating Profit (COP) came to €429.6
million full year, up +28.5% as reported and +16.2% on an organic
basis. This was a new record for the Group, and sets it firmly
ahead of schedule in achieving its 2030 strategic roadmap.
This performance includes some very positive currency
effects (+€41.0 million), due primarily to trends in the US
dollar and the renminbi. The average EURO/USD conversion rate
improved from 1.16 in 2021-22 to 1.04 in 2022-23, while the average
collection rate (linked to the Group’s hedging policy) came in at
1.11 in 2022-23 compared with 1.17 in 2021-22.
Current Operating Margin stood at 27.7%, up 1.4 points on
an organic basis and up 2.3 points as reported. This rise
reflects:
- a strong organic increase in gross margin, which reach a
new all-time high of 71.3% (+2.6% on an organic basis, up 4.0
points from 2019-20), supported by a very positive Price-Mix
effect
- tight control of overhead costs (ratio down by 0.1
points on an organic basis, for a 4.7-point decrease from
2019-20)
- increased investment in marketing and communication
(1.3-point rise in ratio on an organic basis, for a 3.7-point
increase from 2019-20).
- very favorable currency effect, adding +0.9 points in
2022-23.
Operating profit came in at €426.5 million, up +33.2% as
reported, after -€3.1 million in non-recurring items. This comes
primarily from the recovery of provisions for international customs
risks offset by the write-down of intangible assets linked to the
Westland brand and a charge linked to the anticipated unwinding of
hedging contracts for ruble exposure in the current geopolitical
context.
Net financial expense rose slightly from -€13.2 million
in 2021-22 to -€17.6 million in 2022-23 reflecting higher interest
rates.
Tax expense stood at €116.3 million, setting the
effective tax rate at 28.4% (28.3% excluding non-recurring items)
compared with 31.1% as reported in 2021-22 (29.3% excluding
non-recurring items). This includes a decline in the corporate tax
rate in France.
Net profit attributable to the Group came to €293.8 million, up
+38.3% as reported, for a net margin of 19.0%, up +2.8 points as
reported.
Excluding non-recurring items, net profit attributable to the
Group was €296.6 million, up +30.0% as reported for a net
margin of 19.2%, up +1.8 points as reported.
Group EPS came to €5.79, up +37.5% from 2021-22 as
reported and more than doubled compared with 2019-20. Excluding
non-recurring items, EPS was €5.85.
Net debt was €536.6 million, an increase of €183.3
million from 31 March 2022. In addition to free cash flow, this
increase reflects a lower level of OCEANE conversion (€42.9 million
in 2022-23 vs €154.6 million in 2021-22) and the payment of a cash
dividend totaling €111.0 million. It resulted in a net debt/EBITDA
ratio of 0.84 at 31 March 2023 compared with 0.79 at 31 March
2022.
Return on Capital Employed (ROCE) came to 24.4% for the
year ended 31 March 2023, up 2.2 pts (-0.2 points on an organic
basis). Significant improvements in the profitability of Group
brands offset continued strategic purchases of eaux-de-vie that
adversely affected capital employed.
At the annual general meeting to be held on 20 July 2023, the
Board of Directors of Rémy Cointreau will propose the payment of
an ordinary dividend of €2.0 per share in cash and an
exceptional dividend of €1.0 per share, also payable in cash.
This dividend reflects the very good results achieved in 2022-23 as
well as the Board’s and the management team’s high level of
confidence in the Group’s growth outlook.
2023-24 outlook
In 2023-24, Rémy Cointreau anticipates a continued strong
normalization of consumption in the United States, at a level that
will nonetheless remain significantly higher than in 2019-20.
At the same time, the Group expects strong growth in the rest of
the world, led by major gains in China, a very good showing in EMEA
and the Rest of Asia, and business similar to levels observed in
2019-20 in Travel Retail.
Against this backdrop, the Group expects sales to remain
stable on an organic basis in 2023-24, with:
- A strong sales decline in the first half,
reflecting a very strong fall in the United States and high bases
for comparison
- A strong recovery in the second half, driven by a sharp
rebound in the US starting in the third quarter
Rémy Cointreau intends to confirm its level of organic
profitability based on:
- Continued roll-out of a value-driven strategy built on a firm
pricing policy and improved price mix
- Resilient gross margin in a persistently inflationary
context
- Stabilization of the ratio of marketing and communication
spend/sales
- Tight control of overhead costs
The Group estimates that currency will have an unfavorable
impact for:
- Sales: between -€50m and -€60m
- COP: between -€10M€ and -€15m
2029-30 objectives confirmed
Taking into account developments in 2023-24 and buoyed by its
advance on roll-out of its strategic roadmap, Rémy Cointreau
reiterates both its financial and extra-financial targets for
2029-30, and its aim to become the global leader in
exceptional spirits.
The Group targets a gross margin of 72% and a Current
Operating Margin of 33% (based on 2019-20 consolidation scope
and exchange rates).
As part of its “Sustainable Exception” plan, Rémy Cointreau aims
to train and engage 100% of its direct partners in agriculture
in sustainable farming practices, targeting a 50% reduction
in carbon emissions per bottle by 2030. This is the first step
towards achieving zero net carbon status in 2050—a trajectory
compatible with holding global warming to +1.5°C as validated by
the Science Based Target Initiative (SBTi).
Changes in the Executive Committee
Rémy Cointreau has announced several changes to its Executive
Committee.
Simon Coughlin, CEO of the Whisky division which includes
Bruichladdich Distillery, Westland and Domaine des Hautes Glaces,
will retire on 31 July 2023, after 11 years with the Group and over
23 years at Bruichladdich Distillery. Douglas Taylor will
take over from him as CEO of Bruichladdich Distillery and join the
Executive Committee in this capacity. Douglas was a member of the
initial Bruichladdich team when the distillery was first acquired,
and joined the Group 11 years ago.
Claire Brugnago, Chief Transformation Officer, who joined
the Group in January 2021, will step down to pursue a personal
entrepreneurial project. As part of the 2030 strategic roadmap,
Claire successfully launched two major transformation projects:
“Digital” and “Commercial Excellence”. Today both are on solid
foundations and are entering the implementation and roll-out phase.
To ensure a seamless integration, they will be rolled out by
operations teams, with Commercial Excellence headed by Ian
McLernon, CEO EMEA, Asia Pacific and Travel Retail, and Digital
led by Jean-Philippe Hecquet, CEO of the Cognac
Division.
A Webcast for investors and analysts will be held today,
starting at 9.00 (CET) with Marie-Amélie de Leusse, Chairwoman;
Eric Vallat, CEO; and Luca Marotta, CFO. Presentation slides are
available online at www.remy-cointreau.com under “Finance”.
Appendices
Sales and Current Operating
Profit by division
€m (unless otherwise stated)
2022-23
2021-22
Change
Reported
A
Organic
B
Reported
C
Reported
A/C-1
Organic
B/C-1
Sales
Cognac
1 100.0
1 020.3
948.3
+16.0%
+7.6%
Liqueurs & Spirits
418.9
395.7
333.2
+25.7%
+18.7%
Subtotal: Group Brands
1 518.9
1 416.0
1 281.5
+18.5%
+10.5%
Partner Brands
29.6
29.7
31.3
-5.4%
-5.3%
Total
1 548.5
1 445.6
1 312.9
+17.9%
+10.1%
Current Operating Profit
Cognac
405.2
370.4
323.0
+25.5%
+14.7%
As % of total sales
36.8%
36.3%
34.1%
+2.8 pts
+2.2 pts
Liqueurs & Spirits
48.1
41.9
35.5
+35.6%
+18.1%
As % of total sales
11.5%
10.6%
10.6%
+0.8 pt
-0.1 pt
Subtotal: Group Brands
453.3
412.3
358.4
+26.5%
+15.0%
As % of total sales
29.8%
29.1%
28.0%
+1.9 pt
+1.1 pt
Partner Brands
0.1
0.0
-
-
-
Holding company costs
-23.7
-23.6
-24.0
-1.2%
-1.7%
Total
429.6
388.6
334.4
+28.5%
+16.2%
As % of total sales
27.7%
26.9%
25.5%
+2.3 pts
+1.4 pt
Summary income statement
€m (unless otherwise stated)
2022-23
2021-22
Change
Reported
Organic
Reported
Reported
Organic
A
B
C
A/C-1
B/C-1
Sales
1 548.5
1 445.6
1.312.9
+17.9%
+10.1%
Gross margin
1 103.8
1 029.3
901.1
+22.5%
+14.2%
Gross margin (%)
71.3%
71.2%
68.6%
+2.6 pts
+2.6 pts
Current Operating Profit
429.6
388.6
334.4
+28.5%
+16.2%
Current operating margin (%)
27.7%
26.9%
25.5%
+2.3 pts
+1.4 pts
Other non-current income and expenses
(3.1)
(2.1)
(14.1)
-
-
Operating profit
426.5
386.6
320.3
+33.2%
+20.7%
Net financial income (expense)
(17.6)
(15.8)
(13.2)
+33.0%
+19.4%
Corporate income tax
(116.3)
(105.5)
(95.6)
+21.7%
+10.4%
Tax rate (%)
(28.4%)
(28.4%)
(31.1%)
+2.7 pts
+2.7 pts
Share in profit (loss) of
associates/minority interests
1.2
1.2
1.0
+27.1%
+27.1%
Net profit – Group share
293.8
266.5
212.5
+38.3%
+25.4%
Net margin
19.0%
18.4%
16.2%
+2.8 pts
+2.3 pts
Net profit – Group share excl.
non-recurring items
296.6
268.5
228.1
+30.0%
+17.7%
Net margin excl. non-recurring items
19.2%
18.6%
17.4%
+1.8 pts
+1.2 pts
EPS Group - share (€)
5.79
5.25
4.21
+37.5%
+24.7%
EPS Groupe – share excluding non-recurring
items (€)
5.85
5.29
4.52
+29.3%
+17.1%
Reconciliation of net profit
and net profit excluding non-recurring items
Net profit – Group share
2022-23
2021-22
Other operating income and expenses
293.8
212.5
Tax on “other operating income and
expenses”
3.1
14.1
Effect of changes in the tax rate on
deferred taxes in France, the United Kingdom and Greece
(0.4)
(3.4)
Net profit - Groupe share excluding
non-recurring items
-
4.9
Net profit – Group share
296.6
228.1
Cash-Flow statement
As of March 31 (in €m)
2023
2022
Change
Opening net financial debt (1
April)
(353.3)
(314.3)
-39.0
Gross operating profit (EBITDA)
481.6
383.4
98.2
WCR for eaux-de-vie and spirits in ageing
process
(152.6)
(67.7)
-84.9
Other working capital items
(42.0)
(72.7)
30.6
Capital expenditure
(75.6)
(54.5)
-21.1
Financial expenses
(13.3)
(8.7)
-4.6
Tax payments
(140.4)
(89.6)
-50.8
Net flows on other non-current income and
expenses
(9.2)
0.0
-9.1
Free Cash-Flow
48.6
90.3
-41.7
Dividends
(111.0)
(93.7)
-17.3
Capital increase / share buyback
(162.7)
(166.4)
3.6
OCEANE conversion impact on Financial
debt
42.9
154.6
-111.7
Conversion differences and others
(1.1)
(23.9)
22.8
Other Cash flow
(231.9)
(129.3)
-102.6
Total cash flow for the period
(183.3)
(39.0)
-144.3
Closing net financial debt (30
September)
(536.6)
(353.3)
-183.3
A Ratio (Net debt/EBITDA)
0.84
0.79
0.05
Balance sheet
As of March 31 (in €m)
2023
2022
Non-current assets
1,004.4
982.5
Current assets
2,182.5
1,996.0
o/w inventories
1,815.8
1,615.5
o/w Cash and equivalent
73.7
116.3
Total Assets
3,187.0
2,978.6
Shareholders’ equity
1,755.1
1,661.8
Non-current liabilities
396.5
449.6
o/w Long term financial debt
325.1
363.9
Current Liabilities
1,035.3
867.2
o/w Short-term financial debt
285.3
105.7
Total Liabilities and Shareholders’
equity
3,187.0
2,978.6
Definitions of alternative performance
indicators
Due to rounding, the sum of values presented in this document
may differ from totals as reported. Such differences are not
material.
Rémy Cointreau’s management process is based on the following
alternative performance indicators, selected for planning and
reporting purposes. The Group’s management considers that these
indicators provide users of the financial statements with useful
additional information to help them understand the Group’s
performance. These alternative performance indicators should be
considered as supplementing those included in the consolidated
financial statements and the resulting movements.
Organic growth in sales and Current Operating Profit
Organic growth is calculated excluding the impact of exchange
rate fluctuations, acquisitions and disposals. This indicator
serves to focus on Group performance common to both financial
years, which local management is more directly capable of
measuring.
The impact of exchange rates is calculated by converting sales
and Current Operating Profit for the current financial year using
average exchange rates (or, for Current Operating Profit, the
hedged exchange rate) from the previous financial year.
For acquisitions in the current financial year, sales and
Current Operating Profit of acquired entities are not included in
organic growth calculations. For acquisitions in the previous
financial year, sales and Current Operating Profit of acquired
entities are included in the previous financial year; however, they
are only included in current year organic growth calculations with
effect from the anniversary date of the acquisition.
For significant disposals, data is post-application of IFRS 5,
under which results of entities disposed of are systematically
reclassified under “Net earnings from discontinued operations”.
Indicators “excluding non-recurring items”
The two items set out below constitute key indicators for
measuring recurring business performance, since they exclude
significant items which, by virtue of their unusual nature, cannot
be considered inherent to the Group’s ongoing performance:
- Current Operating Profit consists of operating profit
before other non-recurring operating income and expenses.
- Net profit attributable to the Group excluding non-recurring
items consists of net profit attributable to the Group adjusted
to exclude other non-recurring operating income and expenses,
associated tax effects, profit from deconsolidated, divested and
discontinued operations and the contribution from dividends paid in
cash.
Gross operating profit (EBITDA)
This measure, which is used in particular to calculate certain
ratios, equates to Current Operating Profit less amortization and
depreciation expenses on intangible assets and property, plant and
equipment for the period, expenses arising from stock option plans,
and dividends received from associates during the period.
Net debt
Net financial debt as defined and used by the Group is equal to
the sum of long- and short-term financial debt and accrued
interest, less cash and cash equivalents.
About Rémy Cointreau
All around the world, there are clients seeking exceptional
experiences; clients for whom a wide range of terroirs means a
variety of flavors. Their exacting standards are proportional to
our expertise – the finely-honed skills that we pass down from
generation to generation. The time these clients devote to drinking
our products is a tribute to all those who have worked to develop
them. It is for these men and women that Rémy Cointreau, a
family-owned French Group, protects its terroirs, cultivates
exceptional multi-centenary spirits and undertakes to preserve
their eternal modernity. The Group’s portfolio includes 14 singular
brands, such as the Rémy Martin and Louis XIII cognacs, and
Cointreau liqueur. Rémy Cointreau has a single ambition: becoming
the world leader in exceptional spirits. To this end, it relies on
the commitment and creativity of its 2,021 employees and on its
distribution subsidiaries established in the Group’s strategic
markets. Rémy Cointreau is listed on Euronext Paris.
Regulated information in connection with this
press release can be found at www.remy-cointreau.com
_______________________ 1 All references to “organic growth” in
this press release refer to growth at constant currency and
scope.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230531005982/en/
Investor relations: Célia d’Everlange /
investor-relations@remy-cointreau.com Media relations:
Mélissa Lévine / press@remy-cointreau.com
Remy Cointreau (EU:RCO)
過去 株価チャート
から 4 2024 まで 5 2024
Remy Cointreau (EU:RCO)
過去 株価チャート
から 5 2023 まで 5 2024