COP: +39.9% on an organic basis (+56.9% vs.
2019-20)
2022-23 outlook: the Group is starting the
year with confidence
Regulatory News:
Rémy Cointreau (Paris:RCO) posted consolidated sales of
€1,312.9 million in 2021-22, up +27.3% on an organic basis1 (+29.4%
compared to 2019-20). The Group reaped the full benefits of rapid
growth in new consumption trends, including in particular upmarket
movement and the rise of mixology.
Current Operating Profit came in at €334.4 million,
equating to exceptional organic growth of +39.9% (+56.9% compared
to 2019-20). This resulted in strong growth in the Current
Operating Margin, up +2.3 percentage points (pp) on an organic
basis to an all-time high of 25.5% (up +4.6 pp compared to
2019-20).
Rémy Cointreau’s Chief Executive Officer, Eric Vallat,
said, “Rémy Cointreau has posted record results that
demonstrate the relevance and potential of its brands, backed by
genuine savoir-faire, up to three hundred years of history and
exceptional terroirs. Progress against our strategic priorities and
increased investment in marketing and communications to pave the
way for future growth have also played a decisive role. Above all,
we are very proud to have reached a new sustainable development
milestone: Rémy Cointreau, whose top priority remains to lower its
emissions, is the first spirits group to achieve carbon neutrality
under its #APlanetOfException plan. In an uncertain environment,
Rémy Cointreau is now perfectly equipped and ideally placed to
deliver another year of strong growth. On the strength of our
progress against our strategic goals, new consumption trends and
our robust pricing power, we are starting the year 2022-23 with
confidence.”
Key figures in €m (unless otherwise
stated)
2021-22
2020-21
Change
Reported
Organic change
vs. 2020-21
vs. 2019-20
Sales
1,312.9
1,010.2
+30.0%
+27.3%
+29.4%
Gross margin (%)
68.6%
67.3%
+1.3 pp
+1.5 pp
+2.1 pp
Current Operating Profit
334.4
236.1
+41.6%
+39.9%
+56.9%
Current Operating Margin (%)
25.5%
23.4%
+2.1 pp
+2.3 pp
+4.6 pp
Net profit – Group share
212.5
144.5
+47.0%
+45.7%
86.0%
Net profit – Group share excl.
non-recurring items
228.1
148.2
+53.9%
+52.6%
82.4%
Net margin excl. non-recurring items
(%)
17.4%
14.7%
+2.7 pp
+2.9 pp
+5.2 pp
EPS Group share (€)
4.21
2.89
+45.9%
-
-
EPS Group share excl. non-recurring items
(€)
4.52
2.96
+52.8%
-
-
Net debt/EBITDA ratio
0.79
1.33
-0.54
-
-
Current Operating Profit by
division
€m (unless otherwise stated)
2021-22
2020-21
Change
Reported
Organic change
vs. 2020-21
vs. 2019-20
Cognac
323.0
221.0
+46.2%
+43.8%
+58.9%
As % of sales
34.1%
30.1%
+4.0 pp
+4.2 pp
+6.1 pp
Liqueurs & Spirits
35.5
33.0
+7.4%
+10.6%
+16.5%
As % of sales
10.6%
13.3%
-2.7 pp
-2.1 pp
-1.2 pp
Subtotal: Group Brands
358.4
254.0
+41.1%
+39.5%
+52.7%
As % of sales
28.0%
25.8%
+2.1 pp
+2.4 pp
+4.3 pp
Partner Brands
-
(0.8)
-
-
-
As % of sales
-
-
-
-
-
Holding company costs
(24.0)
(17.1)
+40.4%
+39.9%
+19.2%
Total
334.4
236.1
+41.6%
+39.9%
+56.9%
As % of sales
25.5%
23.4%
+2.1 pp
+2.3 pp
+4.6 pp
Cognac
Sales at the Cognac division grew a remarkable
+26.3% on an organic basis in 2021-22 (+30.7% compared to 2019-20),
with volume growth contributing +12.5% and price/mix effects +13.8%
thanks to the growing contribution from high-end and mid-range
products (Club in China and 1738 in the United States) and price
increases. All regions contributed to this excellent
performance.
Current Operating Profit rose +43.8% on an organic basis
to €323.0 million (+58.9% compared to 2019-20). Consequently, the
margin rose +4.2 pp on an organic basis to 34.1% (+6.1 pp compared
to 2019-20). The significant increase in marketing and
communications investment was largely absorbed by very strong
growth in the division’s gross margin (evenly split between volume
and price/mix effects) and its high operating leverage.
Liqueurs & Spirits
Sales at the Liqueurs & Spirits division grew
+31.7% in 2021-22 (+27.5% compared to 2019-20), with volume growth
contributing +24.6% and price/mix effects +7.1%. The division
benefited in particular from excellent performance by Cointreau and
Bruichladdich whiskies and the ramp-up in sales of The
Botanist.
Current Operating Profit came in at €35.5 million, up
+10.6% on an organic basis (+16.5% compared to 2019-20). The
current operating margin came in at 10.6% (down -2.1 pp on an
organic basis). On the strength of its progress against its
strategic priorities, the Group opted to reinvest much of its gross
margin gains (up +1.5 pp vs. 2020-21 and +3.5 pp vs. 2019-20) in
marketing and communications to boost brand awareness and
desirability (notably for Cointreau, The Botanist and Bruichladdich
whiskies) and pave the way for future growth. At the same time, the
Group maintained strict control over its overhead costs.
Partner Brands
Partner Brand sales grew +15.2% on an organic basis in
2021-22 (+13.5% compared to 2019-20), supported by favourable
trends in Europe, their main market.
In terms of Current Operating Profit, Partner Brands
broke even in 2021-22 after posting a -€0.8 million loss in
2020-21.
Consolidated results
Current Operating Profit (COP) came in at €334.4 million,
up +39.9% on an organic basis (up +41.6% on a reported basis). This
performance was mainly driven by exceptional growth in Current
Operating Profit from Group Brands (up +39.5% on an organic basis)
and takes into account a €6.9 million increase in holding company
costs consisting of a €2.0 million donation to the Rémy Cointreau
Foundation and €4.9 million in respect of medium- and long-term
retention measures, employee savings and the employee share
ownership plan.
This performance also includes favourable currency
effects (+€6.4 million), mainly as a result of the favourable
trend in the euro/yuan exchange rate. Furthermore, the average
euro/dollar conversion rate improved from 1.17 in 2020-21 to 1.16
in 2021-22, while the average collection rate (linked to the
Group’s hedging policy) came out at 1.17 in 2021-22, stable year on
year.
Lastly, this performance takes into account adverse
consolidation scope effects of -€2.4 million arising from the
acquisition of Brillet and Telmont.
The Current Operating Margin thus rose sharply, up +2.1
pp on a reported basis to an all-time high of 25.5% (up +2.3 pp on
an organic basis). This strong organic growth reflects the
following:
- a +1.5 pp increase in the gross margin (up +2.1 pp vs.
2019-20) to its highest ever level of 68.6%, driven by very
favourable price/mix effects and strong growth in volumes
- excellent absorption of overheads (with the overhead
ratio down 2.3 pp on an organic basis)
- increased investment in marketing and communications
(with the ratio up 1.5 pp on an organic basis) to boost brands’
medium-term growth potential
- neutral currency effects and adverse consolidation
scope effects (-0.2 pp)
Operating profit came in at €320.3 million, up +35.8% on
a reported basis, after taking into account -€14.1 million in
non-recurring items.
The net financial expense improved from -€14.6 million in
2020-21 to -€13.2 million in 2021-22.
The tax expense totalled €95.6 million, giving an
effective tax rate of 31.1% (29.3% excluding non-recurring items),
a significant improvement on 2020-21 (35.1% on a reported basis and
33.5% excluding non-recurring items). This improvement was mainly
the result of a reduction in the tax rate in France and a
favourable geographical mix.
After taking into account the Group’s share of net income from
associates, net profit attributable to the Group came in at
€212.5 million, up +47.0% on a reported basis (up +45.7% on an
organic basis).
Excluding non-recurring items, net profit attributable to the
Group came in at €228.1 million, up +53.9% on a reported basis
(up +52.6% on an organic basis), giving a net margin of 17.4%, up
+2.7 pp on a reported basis (up +2.9 pp on an organic basis).
Earnings per share (excluding non-recurring items) came
out at €4.52, up +52.8% on a reported basis.
Net debt stood at €353.3 million, up €39.0 million from
the position at 31 March 2021. In addition to free cash flow, this
improvement in net debt mainly reflects the non-cash effect of the
early conversion of €154.6 million of OCEANE debt, offset by the
share buyback programme (€169.5 million) and the payment of a cash
dividend (€93.7 million). This resulted in a net debt/EBITDA
ratio of 0.79x at 31 March 2022, compared with 1.33x at 31
March 2021.
The return on capital employed (ROCE) came out at 22.2%
for the year ended 31 March 2022, up +5.1 pp year on year (up +4.9
pp on an organic basis). Continued strategic purchases of
eaux-de-vie adversely affecting capital employed were offset by a
significant improvement in the profitability of Group Brands.
At the annual general meeting to be held on 21 July 2022, the
Board of Directors of Rémy Cointreau will propose the payment of
an ordinary dividend of €1.85 per share in cash and
an exceptional dividend of €1.0 per share payable in cash or
shares. This dividend reflects the Board’s and the management
team’s high level of confidence in the Group’s growth outlook.
2022-23 outlook
Ideally positioned to take advantage of new consumption trends
and on the strength of progress against its strategic plan, Rémy
Cointreau is starting financial year 2022-23 with
confidence.
The Group intends to continue implementing its strategy focused
on medium-term brand development and underpinned by a policy of
sustained investment in marketing and communications. The Group
reaffirms its desire to continue to win market share in the
exceptional spirits sector and anticipates another year of
strong growth. In particular, Rémy Cointreau is forecasting
strong first-quarter sales despite a very high base effect
and the impact of the Covid-19 pandemic in China.
Helped by excellent pricing power, the improvement in the
Current Operating Margin will be driven by the solid
resilience of the Group’s gross margin despite the
inflationary environment and by strict control over overhead
costs.
For the full year, the Group expects currency effects to be
positive for Current Operating Profit, which it forecasts should be
in the range €30-40 million.
2030 guidance confirmed
Over the last year, Rémy Cointreau has benefited from very
strong consumption, reflecting the structural acceleration in
consumption trends observed since 2020 in an environment marked by
the pandemic: the outperformance of high-end segments, at-home
consumption, the rise of mixology, growth in online sales and
growing interest in corporate social and environmental
responsibility.
Rémy Cointreau reiterates its financial and non-financial
guidance for 2029-30.
On financials, the Group is targeting a gross margin of 72%
and a Current Operating Margin of 33% (based on 2019-20
consolidation scope and exchange rates).
Through its Sustainable Exception plan, the Group aims to
achieve sustainable agriculture across all land on which its
spirits depend, as well as a 50% reduction in carbon emissions
per bottle by 2030. This will be a first step towards the
Group’s ambition of achieving “net zero carbon” by 2050.
Rémy Cointreau reaffirms its ambition of becoming the global
leader in exceptional spirits.
Appendices
Sales and Current Operating Profit by division
€m (unless otherwise stated)
2021-22
2020-21
Change
Reported
A
Organic
B
Reported
C
Reported
A/C-1
Organic
B/C-1
Sales
Cognac
948.3
928.2
735.0
+29.0%
+26.3%
Liqueurs & Spirits
333.2
327.1
248.3
+34.2%
+31.7%
Subtotal: Group Brands
1,281.5
1,255.3
983.3
+30.3%
+27.7%
Partner Brands
31.3
31.0
26.9
+16.3%
+15.2%
Total
1,312.9
1,286.4
1,010.2
+30.0%
+27.3%
Current Operating Profit
Cognac
323.0
317.8
221.0
+46.2%
+43.8%
As % of sales
34.1%
34.2%
30.1%
+4.0 pp
+4.2 pp
Liqueurs & Spirits
35.5
36.5
33.0
+7.4%
+10.6%
As % of sales
10.6%
11.2%
13.3%
-2.7 pp
-2.1 pp
Subtotal: Group Brands
358.4
354.3
254.0
+41.1%
+39.5%
As % of sales
28.0%
28.2%
25.8%
+2.1 pp
+2.4 pp
Partner Brands
-
-
(0.8)
-
-
As % of sales
-
-
-
-
-
Holding company costs
(24.0)
(23.9)
(17.1)
+40.4%
+39.9%
Total
334.4
330.3
236.1
+41.6%
+39.9%
As % of sales
25.5%
25.7%
23.4%
+2.1 pp
+2.3 pp
Summary income statement
€m (unless otherwise stated)
2021-22
2020-21
Change
Reported
Organic
Reported
Reported
Organic
A
B
C
A/C-1
B/C-1
Sales
1,312.9
1,286.4
1,010.2
+30.0%
+27.3%
Gross profit
901.1
885.3
680.1
+32.5%
+30.2%
Gross margin (%)
68.6%
68.8%
67.3%
+1.3 pp
+1.5 pp
Current Operating Profit
334.4
330.3
236.1
+41.6%
+39.9%
Current operating margin (%)
25.5%
25.7%
23.4%
+2.1 pp
+2.3 pp
Other operating income and expenses
(14.1)
(14.1)
(0.2)
-
-
Operating profit
320.3
316.3
235.9
+35.8%
+34.1%
Net financial income (expense)
(13.2)
(13.0)
(14.6)
-9.4%
-11.3%
Corporate income tax
(95.6)
(93.6)
(77.6)
+23.1%
+20.7%
Tax rate (%)
(31.1%)
(30.9%)
(35.1%)
-4.0 pp
-4.2 pp
Share in profit (loss) of
associates/minority interests
1.0
1.0
0.9
-
-
Net profit attributable to the
Group
212.5
210.6
144.5
+47.0%
+45.7%
Net profit excluding non-recurring
items
228.1
226.2
148.2
+53.9%
+52.6%
Net profit (excluding non-recurring
items)/sales
17.4%
17.6%
14.7%
+2.7 pp
+2.9 pp
EPS Group share (€)
4.21
4.18
2.89
+45.9%
-
EPS Group share excluding non-recurring
items (€)
4.52
4.48
2.96
+52.8%
-
Reconciliation of net profit and net profit excluding
non-recurring items
€m
2021-22
2020-21
Net profit attributable to the
Group
212.5
144.5
Other operating income and expenses
14.1
0.2
Non-recurring tax items
(3.4)
(0.1)
Effect of changes in the tax rate on
deferred taxes in France, the UK and Greece
4.9
3.6
Net profit Group share excluding
non-recurring items
228.1
148.2
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 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 amortisation 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 1,850 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/20220601006078/en/
Investor Relations: Célia d’Everlange +33 6 03 65 46 78
Media Relations: Carina Alfonso Martin + 33 6 74 53 55
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