2023-24 full-year guidance confirmed
- Sequential improvement in the United States, driven by positive
phasing effect
- Major destocking in China ahead of the Chinese New
Year
- Solid execution of cost-cutting measures in line with plan
- 2023-24 full-year guidance confirmed:
- Sales: decline at the lower end of the guidance range1 (close
to -20% on an organic basis)
- COP margin: contained decrease on an organic basis
- 2029-30 full-year guidance confirmed
Regulatory News:
Rémy Cointreau (Paris:RCO) generated consolidated sales of
€956.6 million in the first nine months of 2023-2024, down -22.7%
on an organic basis2 (+16.7% compared to the first nine months
of 2019-20). On a reported basis, the decline was -26.7%, including
a negative currency effect of -4.0%, due primarily to the renminbi
and the US dollar. This performance includes a -23.5% decrease on
an organic basis in the third quarter of 2023-2024, representing a
+9.1% organic rise compared to the third quarter of 2019-2020.
The Cognac division saw sales retreat -33.9% on an
organic basis in the third quarter, affected by a major destocking
in China and a persistently sluggish market in the United States.
The Liqueurs & Spirits division reported third-quarter
growth of +4.3% on an organic basis, driven by good momentum and
positive phasing effect in the United States.
In the Americas, sales edged down in the third quarter,
underscoring a significant sequential improvement from the second
quarter (positive phasing effect in Liqueurs & Spirits), while
in APAC shipments fell sharply. This reflected major
destocking in China and, to a lesser extent, the unfavorable
calendar impact of this year’s earlier Chinese New Year. Lastly,
the EMEA region reported a sharp drop in sales due to the
combined impact of unfavorable phasing and inflation curbing
consumption.
Breakdown of sales by division:
€m (April – December)
9M 2023-24
9M 2022-23
Change as reported
Organic change
vs. 9M 22-23
vs. 9M 19-20
Cognac
613.2
952.1
-35.6%
-31.4%
+3.5%
Liqueurs & Spirits
321.3
328.6
-2.2%
+1.5%
+57.8%
Subtotal: Group Brands
934.5
1 280.7
-27.0%
-22.9%
+17.1%
Partner Brands
22.1
24.0
-7.9%
-7.3%
-0.8%
Total
956.6
1 304.7
-26.7%
-22.7%
+16.7%
Cognac
Third-quarter sales at the Cognac division were down
-33.9% on an organic basis.
In the United States, performance was affected by the
intense promotional environment (which gathered pace as the
year-end approached) and ongoing inventory reductions. Depletions
(wholesale sales) improved sequentially but continued to lag
expectations. In the third quarter, Rémy Martin continued to invest
in its brands and unveiled its new Life is a melody campaign
featuring singer Usher.
In China, the Group significantly reduced its level of
inventories ahead of the Chinese New Year. At the same time, it
expanded its marketing efforts. Initiatives included a new campaign
for Rémy Martin CLUB featuring its first brand spokesperson,
Chinese actor Xian Li, and the release of Blossoms Shanghai, a
Chinese television series directed and produced by Hong Kong’s Wong
Kar-wai in which Rémy Martin XO features prominently. Lastly, Rémy
Cointreau launched numerous e-commerce activations on its strategic
T-Mall and JD.com platforms during the Double-Eleven Festival, and
sales on its e-commerce channel rose steeply.
The EMEA region posted a mixed performance, hit by
unfavorable phasing effect, inflation’s impact on consumer demand,
and a fiercely competitive promotional environment.
Liqueurs & Spirits
Sales of the Liqueurs & Spirits division increased by
+4.3% on an organic basis in the third quarter thanks to strong
growth in sales in the United States, notably of The Botanist gin
and Cointreau liqueur. The latter is benefitting from good momentum
fueled by the roll-out of its latest Keep it Cosmo and MargaRight
campaigns featuring actress Aubrey Plaza.
After a solid first half, sales in the EMEA region
slowed, reflecting adverse phasing effect and a tapering off in
demand in an inflationary context.
Lastly, sales in the APAC region were down, hit by slowed
growth in demand in the whisky category in China.
Partner brands
Partner brands reported third-quarter sales down -13.5%
on an organic basis, affected by trends in the Benelux and the
United Kingdom.
2023-24 full-year objectives
confirmed
For full-year 2023-24, Rémy Cointreau assumes the following:
- In the United States, market conditions have
deteriorated on the back of a fiercely promotional environment and
a rise in interest rates that has cut distributors’ financing
capacity. Consequently, Rémy Cointreau does not expect a return to
growth in sales before fiscal 2024-25.
- In APAC, the Group expects growth in sales, tempered by
a slower than anticipated post-Covid economic recovery in
China.
- Lastly, in the EMEA region, the Group expects growth in
sales to be moderated by a persistently inflationary context.
In this context, Rémy Cointreau is determined to protect its
2023-24 profitability through tight cost controls, while continuing
to roll out its medium-term plan. To this end, it will:
- maintain a strict and uncompromising pricing policy
- protect its gross margin in a persistently inflationary
environment
- selectively reduce its marketing and communications spend,
particularly for the Cognac division
- significantly reduce other operating costs
As a result, in 2023-24 Rémy Cointreau expects:
- a decline in sales at the lower end of the guidance range3
(close to -20% on an organic basis)
- a contained organic decrease in COP margin thanks to
deployment of a major cost-cutting plan, estimated at around €100
million this year (including €25 million already achieved in the
first half)
Lastly, based on shifts in its geographical mix and the
renminbi’s decline, the Group expects exchange rates to have a
negative impact for the full year for:
- Sales: between -€50m and -€60m
- COP: between -€10m and -€15m
Rémy Cointreau is today ahead of its strategic plan, with
operations underpinned by solid foundations and a long-term vision.
This makes 2023-24 a year that will allow the Group to return
cognac inventories in the United States to healthier levels and
absorb the effects of post-Covid normalization before heading
into 2024-25 in the best possible conditions, resuming the
trajectory it set itself for 2029-30.
Post-close
events
On January 5, 2024, industry associations (SpiritsEUROPE and
BNIC) and industry players including Rémy Cointreau were informed
that the Ministry of Commerce of the People’s Republic of China had
opened an anti-dumping investigation.
This investigation targets brandy exports from European Union
member countries to China in containers of under 200 liters for the
period between October 1, 2022 and September 30, 2023. It may run
for up to 12 months and can be extended for a further 6 months.
Rémy Cointreau immediately contacted its institutional
representatives and is cooperating fully with the Chinese
authorities in this investigation.
China is a long-standing trade partner of Rémy Cointreau and the
European spirits industry. Relations and levels of cooperation have
always been excellent. The Group is convinced that its products and
business practices comply fully with Chinese and international
regulations, and is approaching future discussions with confidence
and diligence.
2029-30 objectives
confirmed
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).
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.
A conference call with investors and analysts will be held today
by CFO Luca Marotta, from 9:00 am (Paris time). Related slides will
also be available on the website (www.remy-cointreau.com) in the
Finance section.
Appendices
Q1 2023-24 sales (April-June 2023)
€m
Reported 23-24
Forex 23-24
Scope 23- 24
Organic 23-24
Reported 22-23
Reported change
Organic change
A
B
C
A/C-1
B/C-1
Cognac
155.1
-6.6
-
161.6
292.3
-46.9%
-44.7%
Liqueurs & Spirits
95.0
-2.2
-
97.2
109.7
-13.5%
-11.4%
Subtotal: Group Brands
250.0
-8.8
-
258.8
402.0
-37.8%
-35.6%
Partner Brands
7.5
-0.1
-
7.6
7.9
-5.4%
-4.6%
Total
257.5
-8.9
-
266.4
409.9
-37.2%
-35.0%
Q2 2023-24 sales (July-September 2023)
€m
Reported 23-24
Forex 23-24
Scope 23- 24
Organic 23-24
Reported 22-23
Reported change
Organic change
A
B
C
A/C-1
B/C-1
Cognac
261.0
-23.1
-
284.1
345.9
-24.5%
-17.8%
Liqueurs & Spirits
111.7
-5.7
-
117.4
104.7
+6.7%
+12.1%
Subtotal: Group Brands
372.7
-28.8
-
401.6
450.6
-17.3%
-10.9%
Partner Brands
6.4
0.0
-
6.5
6.6
-2.3%
-1.6%
Total
379.2
-28.9
-
408.0
457.2
-17.1%
-10.8%
H1 2023-24 sales (April-September 2023)
€m
Reported 23-24
Forex 23-24
Scope 23- 24
Organic 23-24
Reported 22-23
Reported change
Organic change
A
B
C
A/C-1
B/C-1
Cognac
416.1
-29.7
-
445.8
638.1
-34.8%
-30.1%
Liqueurs & Spirits
206.7
-7.9
-
214.6
214.5
-3.6%
+0.1%
Subtotal: Group Brands
622.7
-37.7
-
660.4
852.6
-27.0%
-22.5%
Partner Brands
14.0
-0.1
-
14.1
14.5
-4.0%
-3.2%
Total
636.7
-37.8
-
674.5
867.1
-26.6%
-22.2%
Q3 2023-24 sales (October-December 2023)
€m
Reported 23-24
Forex 23-24
Scope 23- 24
Organic 23-24
Reported 22-23
Reported change
Organic change
A
B
C
A/C-1
B/C-1
Cognac
197.1
-10.4
-
207.5
314.0
-37.2%
-33.9%
Liqueurs & Spirits
114.6
-4.4
-
119.0
114.1
+0.4%
+4.3%
Subtotal: Group Brands
311.8
-14.7
-
326.5
428.1
-27.2%
-23.7%
Partner Brands
8.1
0.0
-
8.2
9.5
-14.0%
-13.5%
Total
319.9
-14.8
-
334.7
437.6
-26.9%
-23.5%
9M 2023-24 sales (April-December 2023)
€m
Reported 23-24
Forex 23-24
Scope 23- 24
Organic 23-24
Reported 22-23
Reported change
Organic change
A
B
C
A/C-1
B/C-1
Cognac
613.2
-40.1
-
653.3
952.1
-35.6%
-31.4%
Liqueurs & Spirits
321.3
-12.3
-
333.6
328.6
-2.2%
+1.5%
Subtotal: Group Brands
934.5
-52.4
-
986.9
1 280.7
-27.0%
-22.9%
Partner Brands
22.1
-0.2
-
22.2
24.0
-7.9%
-7.3%
Total
956.6
-52.6
-
1 009.2
1 304.7
-26.7%
-22.7%
Regulated information in connection with this
press release can be found at www.remy-cointreau.com
Definitions of
alternative performance indicators
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 its performance.
These indicators should be considered as supplementing those
including in the consolidated financial statements and resulting
movements.
Organic sales growth:
Organic growth excludes the impact of exchange rate
fluctuations, acquisitions and disposals.
The impact of exchange rate fluctuations is calculated by
converting sales for the current financial year using average
exchange rates from the prior financial year.
For current-year acquisitions, sales of acquired entities are
not included in organic growth calculations. For prior-year
acquisitions, sales of acquired entities are included in the
previous financial year but are only included in current-year
organic growth with effect from the actual date of acquisition.
For significant disposals, data is post-application of IFRS 5
(which reclassifies entities disposed of under “Net earnings from
discontinued operations” for the current and prior financial year).
It thus focuses on Group performance common to both financial
years, over which local management has more direct influence.
_________________ 1 Guidance range published on October 27, 2023
(between -15% and -20% organically) 2 All references to “on an
organic basis” in this press release refer to sales growth at
constant currency and consolidation scope 3 Guidance range
published on October 27, 2023 (between -15% and -20%
organically)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240125148232/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 10 2024 まで 11 2024
Remy Cointreau (EU:RCO)
過去 株価チャート
から 11 2023 まで 11 2024
