Rémy Cointreau: Very good start to the year
26 Juillet 2022 - 7:25AM
Business Wire
Sales: +27.0% in organic growth
Full-year guidance confirmed
Regulatory News:
Rémy Cointreau (Paris:RCO) posted sales of
409.9 million euros in the first quarter of 2022-23, up
+27.0% in organic terms1 (compared to an exceptionally high
base of comparison of +105.0% in Q1 2021-22). This demonstrates a
very positive price/mix effect (+14.5%), in line with the
Group’s value strategy, and a significant increase in volumes
(+12.5%), including a favourable phasing effect for shipments
to the United States. Reported sales were up +39.9%,
including a very positive currency effect (+12.9%), mainly due to
the movement of the US dollar and Chinese renminbi.
During the quarter, the Group has benefited from an excellent
dynamic in the United States and the continued recovery in the EMEA
region. Activity in China rebounded strongly in June having
suffered due to lockdown measures in April-May.
All the brands contributed to the Group's excellent performance.
The Cognac division had an excellent start to the year
(+31.5% organic growth). The Liqueurs & Spirits division
also posted strong growth of +19.4% in organic terms.
Breakdown of sales by division:
€m (April-June 2022)
Q1 2022-23
Q1 2021-22
Reported change
Organic change
Cognac
292.3
199.6
+46.4%
+31.5%
Liqueurs & Spirits
109.7
85.3
+28.7%
+19.4%
Subtotal: Group Brands
402.0
284.9
+41.1%
+27.9%
Partner Brands
7.9
8.2
-3.1%
-3.8%
Total
409.9
293.1
+39.9%
+27.0%
Cognac
The Cognac division had an excellent start to the year.
Sales increased by +31.5% in organic growth, buoyed by the Americas
and the EMEA region. In the United States, Rémy Cointreau
has continued to enjoy sustained demand for its high-end and
mid-range products (Louis XIII, Rémy Martin XO and 1738 Accord
Royal). The performance also reflects the phasing effects of
shipments, the fourth quarter of 2021-22 having been marked by the
Group's decision to manage its strategic inventories. Most regions
in the EMEA zone have seen strong growth, boosted by the
overperformance of high-end products such as Louis XIII and Rémy
Martin XO. Sales in China were temporarily affected by
strict lockdown measures up until May. However, business was
boosted by a strong resumption in sales in June and excellent
growth in e-commerce (particularly on T-Mall and JD.com and for the
18th June shopping festival). The pandemic in China has had limited
impact on the division’s overall performance as sales are
traditionally low during this period. Overall, the global inventory
level remains extremely healthy.
More recently, building on the success of the Team Up For
Excellence campaign in 2021, Rémy Martin 1738 Accord Royal and the
artist Usher have teamed up once more for a new campaign: A Taste
of Passion. This will present the limited-edition first-ever
bottle/NFT using artificial intelligence to give an immersive
multisensory experience. Usher’s own musical vocabulary, used to
describe his olfactory experience when tasting a 1738 Accord Royal,
is transformed into an avant-garde representation (making the
invisible visible). This limited edition will be available as an
NFT on BlockBar.com from 29 July.
Liqueurs & Spirits
First-quarter sales in the Liqueurs & Spirits
division saw +19.4% in organic growth. In the United States,
Maison Cointreau and Bruichladdich Whiskies continue to show good
momentum, while The Botanist gin is reaping the benefits of its
recent campaign during the Super Bowl as it wins new listings.
In Europe, Maison Cointreau has seen exceptional growth. The
brand has just had a major overhaul of its iconic bottle (l’Unique)
which has been unveiled in France. It is due to be deployed in
Europe this summer and then in the United Kingdom, the United
States and Asia. This quarter has also been notable for the very
successful launch of the new ‘Taste the unexpected’ Metaxa campaign
which aimed to increase brand awareness and target a new moment for
consumption: the aperitif. Finally, St-Rémy brandy has recorded
remarkable growth, buoyed by the success of the new St-Rémy
Signature which is capitalising on its versatility and perfect
suitability for the world of the bar. The brand is also benefiting
from the many initiatives undertaken in recent months to initiate
consumers to the specific qualities of French brandy.
Partner Brands
First-quarter sales of Partner Brands fell by -3.8% in
organic terms having been impacted by a high comparative basis in
Europe.
2022-23 outlook: full-year guidance confirmed
Ideally positioned to take advantage of new consumption trends
and encouraged by progress against its strategic plan, Rémy
Cointreau is approaching the 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.
Helped by excellent pricing power, the improvement in the
current operating margin will be driven by the resilience of
the Group’s gross margin despite the inflationary environment
and by strict control over overhead costs.
This year the Group is forecasting a positive currency
effect on:
- Sales: between €90M and €100M (compared with €70-80M
previously)
- Current Operating Profit: between €50M and €60M
(compared with €30-40M previously)
Appendices
First quarter 2022-23 sales (April-June 2022)
€m
Reported 22-23
Forex 22-23
Scope 22-23
Organic 22-23
Reported 21-22
Reported change
Organic Change
A
B
C
A/C-1
B/C-1
Cognac
292.3
+29.8
-
262.5
199.6
+46.4%
+31.5%
Liqueurs & Spirits
109.7
+7.9
-
101.8
85.3
+28.7%
+19.4%
Group Brands
402.0
+37.7
-
364.3
284.9
+41.1%
+27.9%
Partner Brands
7.9
+0.1
-
7.9
8.2
-3.1%
-3.8%
Total
409.9
+37.8
-
372.2
293.1
+39.9%
+27.0%
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 sales growth:
Organic growth is calculated excluding the impact of exchange
rate fluctuations, acquisitions and disposals.
The impact of exchange rates is calculated by converting sales
for the current financial year using average exchange rates from
the previous financial year.
For acquisitions in the current financial year, sales of
acquired entities are not included in organic growth calculations.
For acquisitions in the previous financial year, sales of acquired
entities are included in the previous financial year but are only
included in organic growth calculations for the current year with
effect from the anniversary date of the acquisition.
For significant disposals, data is post-application of IFRS 5
(under which sales of entities disposed of are systematically
reclassified under “Net earnings from discontinued operations” 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 measuring.
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 correspond to sales growth at constant currency and
scope.
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version on businesswire.com: https://www.businesswire.com/news/home/20220725005752/en/
Investor Relations: Célia d’Everlange / +33 6 03 65 46 78
Media relations: Carina Alfonso Martin /
press@remy-cointreau.com
Remy Cointreau (EU:RCO)
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