- Sales up +10.1% on an organic basis1 in the first 9
months of the year
- Sales down -6.0% on an organic basis in the 3rd
quarter, in line with expectations (+42.9% versus Q3
19-20)
- High bases of comparison, and normalization of US cognac
consumption (post-Covid)
- Steep rise in shipments to China ahead of the Lunar New
Year
- Continued recovery in Travel Retail
- Full-year guidance confirmed
Regulatory News:
Rémy Cointreau (Paris:RCO) generated consolidated sales of
€1,304.7 million in the first nine months of 2022-2023, up +10.1%
on an organic basis (+50.3% compared to 2019-2020). Sales rose
20.2% on a reported basis, including a robust 10.1% gain from the
currency effect. Given the normalization of cognac consumption in
the United States and a high basis for comparison on the heels of
two years of exceptionally strong growth, third-quarter sales fell
back as expected by 6.0% on an organic basis, and by -0.7% as
reported. This represents a +42.9% rise compared to the third
quarter of 2019-2020.
Against this backdrop, the Cognac division saw sales
retreat -11.0% in in the third quarter, reflecting the combined
impact of an unfavorable trend in the United States and a very
steep rise in shipments to China. The Liqueurs & Spirits
division reported +10.1% growth driven by very good showings for
Cointreau and for Bruichladdich whiskies.
In the Americas, sales recorded a strong decrease in the
third quarter, while in APAC they rose vigorously, buoyed by
developments in China and continued recovery in Travel Retail and
the rest of Asia. The EMEA region was down slightly,
affected by phasing effects in continental Europe. Both the United
Kingdom and the Benelux generated strong performances.
Breakdown of sales by division:
€m
(April-December)
9M
2022-23
9M
2021-22
Change as reported
Organic change
vs. 9M 21-22
vs. 9M 19-20
Cognac
952.1
797.3
+19.4%
+8.5%
+50.5%
Liqueurs & Spirits
328.6
262.8
+25.1%
+16.7%
+54.9%
Subtotal: Group Brands
1,280.7
1,060.1
+20.8%
+10.5%
+51.6%
Partner Brands
24.0
25.7
-6.8%
-7.0%
+6.4%
Total
1,304.7
1,085.8
+20.2%
+10.1%
+50.3%
Cognac
Third-quarter sales at the Cognac division were down
-11.0%.
In the United States, sales were affected by a high basis
for comparison and the normalization of consumption, albeit at
levels significantly higher than in 2019-2020. Rémy Martin
continued its value-driven strategy, holding prices steady and
investing to raise brand desirability and awareness. Rémy Martin XO
teamed up with actor Lewis Tan, fashion influencer Jessica Wang,
Michelin-starred chef Brandon Jew, and cultural entrepreneur and
producer Danielle Chang to launch “The Lunar New Year Family
Spirit”, a campaign celebrating the Lunar New Year. Rémy Martin
also announced plans to advertise at the Superbowl with the
upcoming launch of a major TV campaign and a series of off-trade
and on-trade activations.
In APAC, the Chinese market continued to bounce
back. Despite disruptions triggered by unprecedented levels of
Covid, the Group successfully generated robust sales growth ahead
of the Chinese New Year and in anticipation of a full recovery in
business. In particular, Rémy Martin saw strong e-commerce sales
during the Double-Eleven and Super Brand Day events on the T-Mall
platform. Meanwhile, Louis XIII opened a sixth boutique in China at
Chengdu’s prestigious SKP Mall and renovated its Beijing store to
coincide with the launch of The Drop. Lastly, Louis XIII celebrated
The Drop’s official debut in Singapore with a new pop-up
store.
In the EMEA region, sales declined slightly, reflecting
phasing effects in continental Europe. The Benelux and AME2 region
rose sharply, while the UK proved resilient.
Liqueurs & Spirits
Third-quarter sales at the Liqueurs & Spirits
division rose +10.1% on an organic basis.
In the United States, the division reported a very strong
performance, buoyed by Cointreau’s excellent showing and good
momentum for Bruichladdich whiskies.
Sales were steady in the EMEA region, reflecting robust
growth in the United Kingdom and the Benelux, and some phasing
effects in continental Europe. During the quarter, the United
Kingdom launched a series of activations promoting Cointreau,
including a “Maison Cointreau” pop-up in London’s Soho district. In
the Benelux, the Group introduced its first Rémy Cointreau pop-up
bar in Amsterdam, dedicated to the art of cocktails and spirits.
Lastly, The Botanist unveiled “Look further”, a new global campaign
promoting the brand’s unique DNA, iconic bottle, exceptional
quality, active involvement in the local community, and the untamed
beauty of the Isle of Islay.
The APAC region reported an excellent showing driven by a
steep rally in Travel Retail for all brands, in particular St-Rémy
Signature, The Botanist Strength (sold exclusively in duty free
outlets), and Laddie Eight by Buichladdich.
Partner brands
Our Partner brands reported third-quarter sales growth of
+3.9% on an organic basis, buoyed by very strong trends in the
Benelux.
2022-23 outlook: full-year guidance confirmed
Rémy Cointreau confirms its objective to generate
another year of strong organic growth, including
normalization of consumption trends in the fourth quarter on the
heels of two outstanding years.
More specifically, as life returns to normal in most regions,
overall consumption is likely to settle in at “new normal” levels
(well above those observed in 2019/20) over the coming quarters,
particularly in the United States. 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 a solid 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: €120/130m (versus €110/120m previously)
- COP: €55/60m
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.
A conference call with investors and analysts will be held today
by CFO Luca Marotta, from 9:00am (Paris time).
Related slides will also be available on the website
(www.remy-cointreau.com), in the Finance section.
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%
Q3 2022-23 sales (October-December 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
314.0
+17.8
-
296.2
332.7
-5.6%
-11.0%
Liqueurs & Spirits
114.1
+5.5
-
108.6
98.7
+15.7%
+10.1%
Group Brands
428.1
+23.3
-
404.8
431.4
-0.8%
-6.2%
Partner Brands
9.5
-
-
9.5
9.1
+3.6%
+3.9%
Total
437.6
+23.3
-
414.3
440.5
-0.7%
-6.0%
9-month 2022-23 sales (April-December 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
952.1
+87.2
-
864.9
797.3
+19.4%
+8.5%
Liqueurs & Spirits
328.6
+21.9
-
306.7
262.8
+25.1%
+16.7%
Subtotal: Group Brands
1,280.7
+109.1
-
1,171.6
1,060.1
+20.8%
+10.5%
Partner Brands
24.0
+0.1
-
23.9
25.7
-6.8%
-7.0%
Total
1,304.7
+109.2
-
1,195.5
1,085.8
+20.2%
+10.1%
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 All references to “on an organic basis” in this press release
refer to sales growth at constant currency and consolidation scope
2 Africa and the Middle East
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230126005967/en/
Investor relations: Célia d’Everlange /
investor-relations@remy-cointreau.com Media relations:
Carina Alfonso Martin / press@remy-cointreau.com
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