Continued robust growth in the third quarter
(up 8.7%*)2018/19 full-year guidance confirmed
Regulatory News:
Rémy Cointreau (Paris:RCO) generated sales of
€919.4 million in the first nine months of its 2018/19
financial year, up 6.7% in reported terms and up 8.1% in
organic terms (at constant exchange rates and consolidation scope).
After 7.7% organic sales growth in the first half, the third
quarter (up 8.7%*) confirmed the Group’s sustained momentum.
The earlier timing of the Chinese New Year in 2019 added 1 point of
growth in the third quarter.
The first nine-month performance was driven by remarkable growth
in Group Brands (up 10.3%*): the House of Rémy Martin
(up 13.1%*) was carried by the success of its brands in the
Asia-Pacific region and in the United States. The
Liqueurs & Spirits division (up 2.3%*) enjoyed
accelerated growth in the third quarter, reaping the benefits of
the communication campaigns. Partner Brands continued to
decline, consistent with the Group’s strategy to gradually refocus
on Group Brands.
The Group’s two growth engines – the Asia-Pacific region and the
Americas – demonstrated excellent momentum over the period, and
particularly in the third quarter. While the end of Partner Brand
distribution agreements continued to weigh on Europe, the Middle
East and Africa (EMEA) over the nine-month period, the third
quarter showed a sequential improvement.
Breakdown of sales by division:
Pre-IFRS 15
Post-IFRS 15 9 months 9
months Change 9 months (€m)
to 31/12/2018 to 31/12/2017
Reported
Organic(*)
to 31/12/2018 House of Rémy Martin 642.8 576.6 11.5%
13.1% 582.0 Liqueurs & Spirits 206.0 204.2 0.9% 2.3%
196.7
Subtotal: Group Brands 848.8 780.8
8.7% 10.3% 778.7 Partner Brands 70.6 81.3
-13.2% -13.6% 69.8
Total 919.4
862.1 6.7% 8.1%
848.5
House of Rémy Martin
The House of Rémy Martin continued its outstanding growth
at end-December (up 13.1% in organic terms). Acceleration in the
third quarter (up 15.6%) was driven by double-digit growth across
all geographic regions. Additionally, the earlier timing of the
2019 Chinese New Year (5 February 2019 as opposed to 16 February in
2018) translated into some anticipated sales in the third quarter,
increasing quarterly growth for cognac by roughly 2 points.
The creativity of the House’s brands and its global strategy of
brand elevation once again bore fruit over the period: with organic
growth of 13.1%, breaking down into volume growth of 7% and a 6%
contribution from mix and price effects.
Liqueurs & Spirits
The Liqueurs & Spirits division posted organic
sales growth of 2.3% over the nine-month period. As expected,
growth accelerated significantly in the third quarter (up 5.0%*),
on the heels of several communication campaigns launched by the
brands.
The House of Cointreau enjoyed faster sales growth in the
third quarter, as it began to reap the benefits of “The Art of the
Mix” campaign (launched in the spring) and of the marketing
activities celebrating the 70th anniversary of the Margarita.
Meanwhile, the House of Metaxa continued its upscaling
strategy, funnelling investments towards its highest-end products
with the second opus of its “Don’t Drink it, Explore it” campaign.
Mount Gay and St-Rémy posted moderate performances
over the nine-month period (upscaling efforts weighed on volumes),
but the third quarter witnessed a tangible upswing. The
Botanist gin and the Whisky business unit posted strong
growth once again across all geographic regions.
Partner Brands
The sales decline over the nine-month period (down 13.6% in
organic terms) was due to the termination of new distribution
contracts with third-party brands. This is consistent with the
Group’s strategy to gradually refocus on its proprietary brands
(Group Brands).
2018/19 outlook
With sales in the first nine months fully in line with the
Group’s forecasts, Rémy Cointreau confirms its guidance of growth
in Current Operating Profit over the 2018/19 financial year,
assuming constant exchange rates and consolidation scope (proforma
Pre-IFRS 15, 16 & 9).
Appendices: Sales and organic growth by
business
First-quarter 2018/19 sales (April-June 2018)
Pre-IFRS 15
Post-IFRS 15 €m Reported
18-19
Forex effect
18-19
Organic
18-19 (*)
Reported
17-18
Reported change Organic (*) Change
Reported
18-19
A B
C A/C-1 B/C-1
House of Rémy Martin 163.5 -10.5 174.0 156.6 4.4% 11.1% 147.0
Liqueurs & Spirits 57.8 -2.4 60.3 58.6 -1.3% 2.8% 55.3
Subtotal: Group Brands 221.3 -12.9
234.3 215.2 2.8% 8.8% 202.3
Partner Brands 20.2 0.1 20.1 25.0 -19.2% -19.7% 20.0
Total
241.5 -12.8 254.4
240.2 0.5% 5.9%
222.2
Second-quarter 2018/19 sales (July-September 2018)
Pre-IFRS 15
Post-IFRS 15 €m Reported
18-19
Forex effect
18-19
Organic
18-19 (*)
Reported
17-18
Reported change Organic (*) Change
Reported
18-19
A B
C A/C-1 B/C-1
House of Rémy Martin 234.5 -1.5 236.0 210.3 11.5% 12.2% 212.6
Liqueurs & Spirits 69.2 -0.7 69.9 70.6 -1.9% -0.9% 66.6
Subtotal: Group Brands 303.7 -2.1 305.9
280.9 8.1% 8.9% 279.3 Partner Brands
26.1 0.1 26.0 23.2 12.3% 11.8% 25.5
Total
329.8 -2.0 331.8
304.1 8.5% 9.1%
304.7
First-half 2018/19 sales (April-September 2018)
Pre-IFRS 15
Post-IFRS 15 €m Reported
18-19
Forex effect
18-19
Organic
18-19 (*)
Reported
17-18
Reported change Organic (*) Change
Reported
18-19
A B
C A/C-1 B/C-1
House of Rémy Martin 398.0 -12.0 410.0 367.0 8.5% 11.7% 359.6
Liqueurs & Spirits 127.1 -3.1 130.2 129.2 -1.6% 0.8% 121.9
Subtotal: Group Brands 525.1 -15.1
540.1 496.1 5.8% 8.9% 481.5
Partner Brands 46.3 0.2 46.1 48.2 -4.0% -4.5% 45.5
Total
571.4 -14.8 586.2
544.4 5.0% 7.7%
527.0
Third-quarter 2018/19 sales (October-December 2018)
Pre-IFRS 15
Post-IFRS 15 €m Reported
18-19
Forex effect
18-19
Organic
18-19 (*)
Reported
17-18
Reported change Organic (*) Change
Reported
18-19
A B
C A/C-1 B/C-1
House of Rémy Martin 244.8 2.5 242.3 209.6 16.8% 15.6% 222.4
Liqueurs & Spirits 79.0 0.1 78.8 75.1 5.2% 5.0% 74.8
Subtotal: Group Brands 323.8 2.7 321.1
284.7 13.7% 12.8% 297.2 Partner Brands
24.3 0.1 24.2 33.0 -26.5% -26.8% 24.3
Total
348.0 2.7 345.3
317.7 9.5% 8.7%
321.5
Nine-month sales 2018/19 (April – December 2018)
Pre-IFRS 15
Post-IFRS 15 €m Reported
18-19
Forex effect
18-19
Organic
18-19 (*)
Reported
17-18
Reported change Organic (*) Change
Reported
18-19
A B
C A/C-1 B/C-1
House of Rémy Martin 642.8 -9.5 652.3 576.6 11.5% 13.1% 582.0
Liqueurs & Spirits 206.0 -3.0 209.0 204.2 0.9% 2.3% 196.7
Subtotal: Group Brands 848.8 -12.4
861.3 780.8 8.7% 10.3% 778.7
Partner Brands 70.6 0.3 70.3 81.3 -13.2% -13.6% 69.8
Total
919.4 -12.1 931.5
862.1 6.7% 8.1%
848.5
Definitions of alternative performance
indicators
Rémy Cointreau's management process is based on the following
alternative performance indicators, chosen for planning and
reporting. The Group management considers that these indicators
provide financial statement users with useful additional
information for understanding the Group's performance. These
alternative performance indicators should be considered as
supplementing those included in the consolidated financial
statements and the resulting movements.
Starting on April 1st 2018, the Rémy Cointreau Group applied the
standard “IFRS 15 – Revenue from Contracts with Customers.” For the
transition, the Group did not opt for retrospective application.
Thus, the comparative period has not been restated and organic
growth is calculated using turnover which excludes the impact of
IFRS 15. The main effect of this standard is the reclassification
of some SG&A costs (notably some promotional expenses) in
deduction of net sales. Its estimated impact on the full-year is a
reduction in net sales amounting to 8% and an accretive effect of
about 1.5 points on the Current Operating Margin.
Organic sales growth
Organic growth is calculated excluding the impacts of variations
in exchange rates as well as acquisitions and disposals.
The impact of exchange rates is calculated by converting sales
for the current financial year into the exchange rate of the
previous financial year.
For acquisitions in the current financial year, the sales of the
acquired entity are not included in organic growth calculations.
For acquisitions in the previous financial year, the sales of the
acquired entity are included in the previous financial year but are
only included in organic growth calculations for the current year
starting from the anniversary date of the acquisition.
For significant disposals, we use data following the application
of IFRS 5, which systematically reclassifies the sales of the sold
entity in "Net profit from activities sold or to be sold" for the
current and previous financial year.
This indicator serves to focus on Group performance common to
both financial years, which local management is more directly
capable of influencing.
(*) Organic growth is calculated assuming constant exchange
rates and consolidation scope.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190121005436/en/
Laetitia Delaye — 07 87 25 36 01
Remy Cointreau (EU:RCO)
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