17 April 2014
Rémy Cointreau's consolidated sales for the financial year ended 31 March 2014 totalled
€1,031.6 million, an organic decline of 10.7%. This decrease follows four years of strong growth (almost 50% cumulative organic growth between 2009/10 and 2012/13).
The trend did not improve in the fourth quarter (down 16.1% organically): in China, Rémy Cointreau pursued its destocking effort against the backdrop of further stringent measures to restrict conspicuous consumption.
Over the full year, the US posted sustained growth and Europe recorded an increase in sales, despite a mixed economic environment.
Exchange rate movements had a negative impact of 2.8% on sales, representing
€33.9 million.
(€ millions) | 12 months to 31.03.14 | 12 months to 31.03.13 | % Change Published Organic* | |
Rémy Martin Liqueurs & Spirits Sub-total - Group Brands Partner Brands | 551.2 237.3 788.6 243.1 | 719.7 237.0 956.7 236.6 | (23.4) 0.2 (17.6) 2.7 | (20.8) 3.3 (14.8) 6.1 |
Total | 1,031.6 | 1,193.3 | (13.5) | (10.7) |
The US achieved a strong performance over the year (up 7.7% organically), thanks to a favourable price mix. Russia, Japan and Africa also reported strong growth.
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Rémy Martin pursued its dynamic branding and commercial policy through sustained and targeted investment in all its markets, continuing to reinforce the positioning of its ultra- premium qualities.
The growth of St Rémy was bolstered by a number of successful innovations resulting in the US, Travel Retail and Eastern Europe growing significantly. Passoa suffered at the hands of a competitive European environment. Bruichladdich continued its expansion within the Rémy Cointreau network.
Partner Brands (up 6.1% organically)The growth of partner brands was driven by Scotch whiskies and champagne in the US, as well as by spirits distributed by the Group's network, particularly in Belgium and the Czech Republic.
Significant event in the fourth quarter Cancellation of shares as part of the share buyback programme: On 25 March 2014, the Board of Directors of Rémy Cointreau decided to cancel 1,283,053 shares by way of a capital reduction. At 31 March 2014, the share capital of Rémy Cointreau comprised48,476,859 shares.
2013/14 earnings outlook
As announced at the end of November 2013, there will be a significant double-digit decline in current operating profit for the financial year, which has been adversely affected by a deliberate drive to reduce inventories in China and a continuing policy of sustained investment in both brands and distribution networks. More specifically, Rémy Cointreau expects to see a decline of between 35% and 40% in current operating profit for the 2013/14 financial year.
The decline in profits and the desire to maintain strategic investments (ie eaux-de-vie and capex) will be reflected in a tangible increase in net debt at the end of March 2014. Nevertheless, the A ratio (Net Debt/EBITDA) will remain at the lower end of the range within the spirits industry.
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Contacts:
Analysts: Laetitia Delaye Tel: 00 33 1 44 13 45 25
Press: Joëlle Jézéquel Tel: 00 33 1 44 13 45 15
APPENDIX REMY COINTREAU Divisional and quarterly analysis of growth in organic sales 2013/14 Financial YearFirst quarter 149.3 57.8 56.6 263.7
Second quarter 177.9 62.6 53.9 294.4
Third quarter 138.7 68.1 80.8 287.6
Fourth quarter 85.3 48.9 51.8 186.0
Total sales 551.2 237.3 243.1 1,031.6
2012/13 Financial YearFirst quarter 173.8 50.0 47.8 271.6
Second quarter 202.3 62.3 59.6 324.2
Third quarter 213.4 70.4 84.9 368.7
Fourth quarter 130.3 54.3 44.2 228.8
Total sales 719.7 237.0 236.6 1,193.3
2013/14 vs 2013/14First quarter (12.9%) 13.0% 20.5% (2.3%) Second quarter (8.3%) 4.7% (5.5%) (5.3%) Third quarter (32.0%) 0.1% (1.5%) (18.9%)
Fourth quarter (32.3%) (7.0%) 20.8% (16.1%) Total sales (20.8%) 3.3% 6.1% (10.7%)
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