Strong growth in sales: +21.1% organic
rise
(vs. a very high basis for comparison in
first-half 2021-22: +52.0%)
Annual targets confirmed
Rémy Cointreau (Paris:RCO) recorded sales of €867.1 million
in the first half of 2022-23, an organic1 rise of +21.1%
(including +16.2% in the second quarter) that came on top of
an exceptionally high basis for comparison following (+52.0%
increase in H1 2021-22). This performance includes a robust
+11.4% increase due to the price-mix effect, in line with the
Group’s value-driven strategy, and a +9.7% rise in sales
volume. Reported data puts sales up by +34.4%, including
a very strong +13.3% contribution from currency translation linked
primarily to the strength of the US dollar and the renminbi.
All regions contributed to Rémy Cointreau’s very strong
first-half organic performance. The Americas generated
growth of +21.1% despite an exceptionally high basis for
comparison. APAC was up +21.7%, driven by a sharp marked
rally in China in the second quarter. And EMEA saw
robust momentum over the summer, gaining +19.9%.
Sales by division:
€m (April-September 2022)
H1 2022-23
H1 2021-22
Change as reported
Organic change
Cognac
638.1
464.6
+37.3%
+22.4%
Liqueurs & Spirits
214.5
164.1
+30.7%
+20.7%
Sub-total: Group Brands
852.6
628.7
+35.6%
+22.0%
Partner Brands
14.5
16.6
-12.5%
-13.0%
Total
867.1
645.3
+34.4%
+21.1%
Cognac
The Cognac division had a very good first half despite a
high basis for comparison. Organic growth in sales came to +22.4%,
with all regions contributing. The US saw double-digit
growth, driven primarily by sales in Q1. By contrast,
China’s contribution rallied sharply in Q2, with a strong
performance from the Mid-Autumn Festival in a market still
unsettled by on-again/off-again pandemic restrictions. Rémy Martin
CLUB turned in a particularly remarkable performance. Lastly, in
the EMEA, Group sales maintained strong momentum in most key
regions in Q2.
Rémy Cointreau continued to deploy a robust investment policy
within the Cognac division. In the US, we teamed up with Usher for
a multitude of marketing activations centered on a Taste of
Passion, with the entire limited-edition bottle and NFT selling out
in two seconds on BlockBar.com.
In China, the Mid-Autumn Festival was a successful springboard
for a range of initiatives promoting Group brands and brand
recognition. Banquets featured prominently, notably for Rémy Martin
XO, the official partner of Michelin.
Liqueurs & Spirits
First-half organic sales at our Liqueurs & Spirits
division were up +20.7%. A very strong performance in the United
States reflected robust trends at Bruichladdich distillery and
Cointreau, the latter once again teaming up with American actor Dan
Levy on social media. The EMEA region had a very good summer
season, including a strong showing by Cointreau, now rolling out
its new bottle; Metaxa, underpinned by a new cocktails campaign;
and St-Rémy, pursuing an up-trading strategy with St-Rémy Signature
and XO. In China, single-malt whiskies remain very popular
and did particularly well at the Mid-Autumn Festival.
Partner Brands
Organic sales of Partner Brands decreased by -13.0% in
the first half, affected by a high basis of comparison in Europe,
particularly in the Benelux.
2022-23 outlook: FY targets confirmed
Ideally positioned to take advantage of new consumption trends
and buoyed by its advance on roll-out of its strategic plan, Rémy
Cointreau is looking to 2022-2023 with confidence.
The Group intends to continue to gain market share value in the
exceptional spirits sector. It expects another year of strong
organic growth, including normalization of consumption trends
in the second half on the heels of two outstanding years.
More specifically, as life “returns to normal” in most regions,
overall consumption from H2 on is likely to settle in at “new
normal” levels that are well above those observed in 2019/20. At
the same time, growth should be tempered by high bases of
comparison.
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, particularly
in the second half of the year.
As a result, organic COP margin improvement will
be driven by gross margin resilience despite the
inflationary environment and by tight control of overhead
costs.
Taking into account the impact of phasing effects on sales
trends and marketing/communication spends, organic COP margin
improvement will be primarily driven by H1.
The full-year impact of currency should be positive
for:
- sales: +€ 110/120m (vs +€90/100m previously)
- COP: +€55/60m (vs +€50/60m previously)
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 1,924 employees and on its
distribution subsidiaries established in the Group’s strategic
markets. Rémy Cointreau is listed on Euronext Paris.
Appendices
Q1 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%
Q2 2022-23 sales (July-September 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
345.9
+39.6
-
306.3
265.0
+30.5%
+15.6%
Liqueurs & Spirits
104.7
+8.4
-
96.3
78.8
+32.9%
+22.2%
Group Brands
450.6
+48.1
-
402.6
343.8
+31.1%
+17.1%
Partner Brands
6.6
+0.0
-
6.6
8.4
-21.6%
-21.9%
Total
457.2
+48.1
-
409.1
352.2
+29.8%
+16.2%
First-half 2022-23 sales (April-September 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
638.1
+69.4
-
568.7
464.6
+37.3%
+22.4%
Liqueurs & Spirits
214.5
+16.4
-
198.1
164.1
+30.7%
+20.7%
Group Brands
852.6
+85.8
-
766.8
628.7
+35.6%
+22.0%
Partner Brands
14.5
+0.1
-
14.5
16.6
-12.5%
-13.0%
Total
867.1
+85.8
-
781.3
645.3
+34.4%
+21.1%
Alternative performance indicators —
Definitions
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.
Regulated information related to 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 exchange rates
and scope
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221024005878/en/
Investor Relations: Célia d’Everlange /
investor-relations@remy-cointreau.com Media Relations:
Carina Alfonso Martin / press@remy-cointreau.com
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