RÉMY COINTREAU Fiscal Year 2015/16 6 months ended
30 September 2015
16 October 2015
H1 sales performance is in-line with our expectations
Technical factors: a 4.9pp/EUR23.3m hit on H1 organic sales growth
Gradually improving consumer trends in H1:
Accelerated trends in the US and in Africa
Slight improvement in Western Europe, led by Germany and the UK
Gradual improvement in sell-through in Greater China
Ongoing weakness in Russia
A year of two-halves (H2 will be much stronger than H1)
FY15/16 outlook confirmed
€m
H1 14/15 Organic Currency H1 15/16Reported growth: +6.1%
471.8
500.7-5.9%+12.0%
Positive currency impact : EUR56.6m
Other currencies 9%
CNY 13%
HKD 14%
USD 64%
Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 +23.4%**(5.7%)**(5.5%)**
(1.0%)**
(9.0%)
(3.2%)
FY 14/15: +0.6%(**) Calculated based on 2013/14 pro forma sales (i.e excluding the Edrington contract in the US)
5
H1 15/16: (5.9%)
Americas EMEA Asia-Pacific Group10,0%
5,0%
+4.0%
0,0%
‐5,0%
‐10,0%
(0.2%)
(5.9%)
‐15,0%
‐20,0%
‐25,0%
(22.2%)
‐30,0%
-
Asia-Pacific sales -22.2%, led by Chinese wholesalers cautiousness and RTM changes
Technical factors weighed on H1 performance:
Route-to-Market adjustments in Greater China
Streamlining of on-trade outlets in Greater China
Change in distributor in Australia
Greater China seeing continued improvement in sell-through trends
Sell-in
Gradual improvement in sell-through: volume depletions flat+ and value depletions down mid-single digits in H1
Improvement led by Mainland China, while HK and Macau remain soft
Solid trends in South East Asia (Vietnam, Philippines, Thailand) and in Japan
New route to market in Australia (joint-venture)
-
Americas sales flat (-0.2%): strong depletion trends mitigated by technical factors
While technical factors weighed on the sales performance…
Exit from the VS cognac category in the US
High comparable base for Cointreau in the US
End of the distribution contract of the champagne brands (Piper and Charles Heidsieck) in the US
Change in distributor in Canada
…Group's US value depletions (excluding VS) are running at strong double-digit rates:
+17.3% over 3M, +18.4% over 6M, +15.2% over 12M
Remarkable acceleration versus FY14-15: we are in the right categories and in the growing segments
5
8
Q1 2015/16 Trends by Region (3)
-
Europe, Middle East & Africa sales up 4.0%, led by Africa and Central Europe
Western Europe: slight sales decline in H1; positive sell-out trends led by Germany/UK
Negative technical factor in H1: earlier Easter celebrations
Double-digit sell-in and sell-out growth in Germany, led by Rémy Martin and Cointreau
UK back to growth (healthy sell-in = sell-out), led by Rémy Martin and Mount Gay
Central Europe: solid performance in H1, led by a strong Q2
Double-digit growth in the Czech Republic and Slovakia; high-single digit growth in Poland
Weak sell-in performance in Greece, mitigated by a good touristic summer season
Russia/CIS: a weak first half
Destocking in Q1; more normalised trends in Q2
Russian depletions down double-digits over 12M
H2 (peak season) will be key
Travel Retail penalized by soft Russian tourism
Triple-digit sales growth in Africa, driven by strong depletion trends and expansion into newer markets
H1 Organic Growth by Product Division
Rémy Martin Liqueurs & Spirits Partner Brands Group3,0%
1,0%
‐1,0%
‐3,0%
‐5,0%
‐7,0%
(3.1%)
(5.9%)
‐9,0%
(8.3%)
‐11,0%
‐13,0%
(12.6%)
‐15,0%
Rémy Martin (-3.1% organic decline)
Asia-Pacific:
Double-digit sales decline in H1 (technical factors + wholesalers' cautiousness)
Greater China sell-through improving gradually: volumes flat+, value down mid-single digits
Americas:
Sales up double-digits in H1, led by the US and Mexico (new distributor)
US volume depletions (excl. VS) running at a strong double-digit rate
Volume depletion trends to Sept 2015
3 months
6 months
12 months
Total US Cognac Market
18.3%
19.8%
19.3%
Rémy Martin (excl. VS)
19.4%
20.4%
16.5%
Source: NABCA/Discus
Exit from VS and solid growth of QS drove price/mix gains of 2-3pp in 12M period to Sept
Europe, Middle East & Africa:
Strong double-digit sales growth in the region, led by Africa (opening of new markets) and a very good performance in Western Europe
Rémy Martin: Marketing Initiatives
12
2-27 November 2015|
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