2024-25 Guidance Confirmed
- Strong drop in sales in the Americas as destocking
continued
- Slight decline in APAC1, reflecting tougher markets in
Southeast Asia as well as a high basis of comparison and complex
conditions in China
- Contrasted performances in EMEA2, with sales hit by
phasing effects, a high basis of comparison and soft consumer
trends
Regulatory News:
Rémy Cointreau (Paris:RCO) reported sales of €217.0 million
in the first quarter of 2024-25, down -15.6% on an organic
basis.3 On a reported basis, the decline was -15.7% including a
negative currency effect of -0.1%, due primarily to trends in the
Chinese renminbi.
Sales in the Americas fell sharply once again as a result
of continued destocking. The APAC region posted a slight
decline, reflecting both the high basis of comparison and sluggish
market in China, and worsening consumption in Southeast Asia. By
contrast, sales in Japan were upbeat, driven by strong momentum.
Lastly, varied performances in EMEA reflected soft consumer
trends, amplified by phasing effects and the high basis of
comparison.
Breakdown of sales by division:
€m
(April-June 2024)
Q1 2024-25
Q1 2023-24
Change as reported
Organic change
vs. Q1 23-24
vs. Q1 19-20
Cognac
135.5
155.1
-12.6%
-12.2%
-17.0%
Liqueurs & Spirits
75.8
95.0
-20.1%
-20.4%
+35.1%
Subtotal: Group Brands
211.3
250.0
-15.5%
-15.3%
-3.7%
Partner Brands
5.7
7.5
-24.3%
-24.6%
-14.0%
Total
217.0
257.5
-15.7%
-15.6%
-4.0%
Cognac
The Cognac division’s first-quarter sales were down
-12.2% on an organic basis, representing a -17.0% decline compared
to Q1 2019-20. In the Americas and more particularly in
the United States, ongoing destocking in the face of
persistently lower depletions4 continued to take a heavy toll on
sales in an overall market struggling with a fiercely promotional
environment and depressed consumer demand. Within the APAC
region, sales in China were almost stable impacted by a high
basis of comparison and a complex consumer environment. E-commerce
continued to stand out for its resilience, growing by over +15%
thanks to good results during the 6/18 festival. Festival
highlights included successful launches of two CLUB limited
editions and many activations to celebrate Rémy Martin’s 300th
anniversary. Over the same period, sales in Southeast Asia
fell sharply, impacted by high-end segments, while momentum in
Japan remained strong. Lastly, sales in the EMEA
region were down, hit by soft consumer markets and phasing effects
in Europe, along with a marked decline in Africa,
particularly South Africa.
Liqueurs & Spirits
First-quarter sales in the Liqueurs & Spirits
division were down -20.4% on an organic basis, representing a
significant +35.1% rise compared to Q1 2019-20. This performance
includes destocking effects in the Americas, particularly in
the United States, despite positive depletions fuelled by
Cointreau, which turned in a solid showing for Cinco de Mayo
festivities, and The Botanist, which launched a host of activations
that boosted visibility. The EMEA region also reported a
sharp fall in sales in a market penalized by inflation and
grappling with a more active promotional environment. Results also
reflected phasing effects and a high basis of comparison,
particularly in the United Kingdom. Lastly, the APAC
region reported a decline in sales, affected by a slowdown in
consumption in Southeast Asia and continued destocking in
the whisky category in China. In contrast, Japan
continued to experience strong growth driven by Bruichladdich.
Partner Brands
Sales of Partner Brands fell by -24.6% in organic terms
in the first quarter due to adverse trends in the Benelux
countries and in the United Kingdom.
2024-25 objectives confirmed
Despite the sharp fall in its 2023-24 results, Rémy Cointreau
continues to exceed milestones set for its 10-year strategic plan.
2024-25 will be a year of transition, with highlights including
finalization of destocking in the Americas, and 2025-26 will mark a
resumption of the trajectory and targets set for
2029-30:
- high single-digit annual growth in sales on average and on an
organic basis
- a gradual organic improvement in Current Operating Profit
margin
In a complex environment with limited visibility in its main
markets, Rémy Cointreau anticipates a gradual recovery in sales
over the course of 2024-25, with the first half affected
by:
- continued inventory adjustments in the Americas, given the
still-negative trend in depletions5
- a high basis of comparison in the APAC region (sales up
+55% in H1 2023-24 compared with H1 2019-20)
- mixed consumption levels in the EMEA region.
Against this backdrop, Rémy Cointreau is determined to use tight
cost controls and its value-driven strategy to protect its
profitability, while continuing to make the investments needed for
tomorrow’s growth.
In 2024-25, the Group will build on:
- the resilience of its gross margin thanks to a measured,
selective rise in prices amid moderate inflation
- normalization of its marketing & communication/sales
ratio, at a level much higher than in 2019-20
- tight control of overheads to offset most of the rise in
costs resulting from the reversal of temporary savings achieved in
2023-24.
Lastly, Group forecasts of the currency effects call
for:
- a negative impact on sales between -€5 million and -€10
million
- a favorable impact on Current Operating Profit of between
+€3 million and +€7 million
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 1,943 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 9:00 am (Paris time). Related slides will
also be available on the website (www.remy-cointreau.com) in the
Finance section.
Appendices
Q1 2024-25 sales (April-June 2024)
€m
Reported
24-25
Forex
24-25
Scope 24-25
Organic
24-25
Reported
23-24
Reported change
Organic
change
A
B
C
A/C-1
B/C-1
Cognac
135.5
-0.6
-
136.1
155.1
-12.6%
-12.2%
Liqueurs & Spirits
75.8
0.3
-
75.6
95.0
-20.1%
-20.4%
Subtotal: Group Brands
211.3
-0.4
-
211.7
250.0
-15.5%
-15.3%
Partner Brands
5.7
0.0
-
5.7
7.5
-24.3%
-24.6%
Total
217.0
-0.4
-
217.4
257.5
-15.7%
-15.6%
Regulated information in connection with this
press release can be found at www.remy-cointreau.com
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 Asia-Pacific 2 Europe, Middle East and Africa 3 All references
to “on an organic basis” in this press release refer to sales
growth at constant currency and consolidation scope 4 Wholesalers’
sales to retailers 5 Wholesalers’ sales to retailers
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723758016/en/
Investor relations: Célia d’Everlange /
investor-relations@remy-cointreau.com Media relations:
Mélissa Lévine / press@remy-cointreau.com
Remy Cointreau (EU:RCO)
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