Rémy Cointreau: Interim Results for the Six Months Ended 30 September 2012
An excellent first half-year
Current operating profit up 33.2%
Operating margin of 23.7%
PARIS -- November 27, 2012
Rémy Cointreau’s (Paris:RCO) sales for the six months to 30 September 2012
were €595.8 million, reflecting organic growth of 13.3%. Current operating
profit was €141.5 million, an increase of 33.2% (18.0% organic growth)
compared with the same period the previous year, which had already risen
strongly. The operating margin, at 23.7%, increased again compared with the
period ended 30 September 2011, in which it had also grown strongly.
This six months performance was due to strong business momentum in all regions
of the world. The Group once again achieved remarkable growth in Asia and the
US and, to a lesser extent, in Europe.
Rémy Cointreau continued its long-term value strategy by maintaining a
consistent pricing policy and moving its products upmarket at a more rapid
pace, with targeted investment to support its brands.
(€m) 6 months to 6 months to % Change
30.09.12 30.09.11 Organic^(1) Published
Net sales 595.8 474.9 +13.3 +25.5
of which Group brands: 489.4 380.4 +15.6 +28.7
Current operating 141.5 106.2 +18.0 +33.2
Operating margin % 23.7 22.4
Net profit (exc. 88.5 61.5 +43.9
Net profit 86.6 47.3 +83.0
Net debt 266.0 114.0
Net debt/EBITDA ratio 0.86 1.06
Net profit per share 1.80 0.96 +87.5
^(1)on a like-for-like
Current operating profit by division
(€m) 6 months to 6 months to % Change
30.09.12 30.09.11 Organic Published
Rémy Martin 131.4 91.2 +27.3 +44.1
Liqueurs & Spirits 19.5 24.1 -24.9 -19.1
Sub-total - Group brands 150.9 115.3 +16.4 +30.9
Partner brands 2.2 1.5 +80.0 +46.7
Holding company costs (11.6) (10.6) -9.4 -9.4
Current operating profit 141.5 106.2 +18.0 +33.2
With strong organic sales growth of 20.1%, on the back of already high
comparatives, Rémy Martin, once again, reported an outstanding 44.1% increase
in current operating profit (up 27.3% organically) to €131.4 million. The
operating margin was 34.9% for the six months under review compared with 32.9%
the previous year, driven by the pricing effect and the growing significance
of upmarket cognacs.
Rémy Martin proved very dynamic in its strategic markets, particularly in
China and the US, where all qualities, especially the upmarket qualities,
recorded substantial growth. Europe also showed signs of growth in some
countries, such as Russia.
Liqueurs & Spirits – The entire division achieved organic sales growth of
3.5%. Cointreau and St-Rémy gained ground in their strategic markets while
Metaxa, which also reported growth, remained affected by the situation in
The Liqueurs & Spirits division generated a current operating profit of €19.5
million due to higher marketing investment during the period. The current
operating margin was 17% compared with 23.4% in the six months of the previous
Partner brands – The Group achieved sales growth of 4.1%, primarily due to the
strong performance of Scotch whiskies distributed in the US. Champagne sales
remained challenging, particularly in Europe. It should be noted that the peak
period for champagne sales is in the third quarter of the Group’s financial
year. This division generated an increase in operating profit to €2.2 million.
Operating profit was €138.8 million, after taking into account expenses of
€2.7 million relating to the Bruichladdich acquisition.
Net financial expense was €9.5 million, a significant decline of €13.7
The tax charge was €41.8 million representing an effective tax rate of 32.3%
(27.3% for the same period last year). The share of losses of associates was
Net profit increased significantly to €86.6 million, compared with €47.3
million for the first six months of the previous year, representing earnings
per share of €1.80 compared with €0.96 in 2011. Excluding non-recurring items,
net profit was €88.5 million, an increase of 43.9%.
Net debt was €266 million following the Bruichladdich acquisition estimated at
€72.8 million. The net debt to EBITDA ratio was 0.86 at the end of September
2012, compared with 1.06 at the end of September the previous year.
Significant events for the first six months of the 2012 financial year
The foreign exchange rate effect was favourable to Rémy Cointreau during the
first six months of the year. The average €/USD book rate was 1.27 during the
period, compared with 1.44 in the previous period, while the hedged rate was
virtually unchanged between the two half-years.
On 3 September 2012, the Group acquired the Bruichladdich Distillery Company
Ltd, a distillery founded in 1881, renowned for its production of premium
single malt Scotch whisky on the Isle of Islay in Scotland, based on an
enterprise value of £58 million. In view of the effective date of this
transaction, this acquisition did not have a significant impact on the results
for the first six months of the financial year.
On 5 June 2012, the Group signed a €255 million syndicated revolving credit
facility to replace a previous facility which had matured.
Post-balance sheet events
On 31 October 2012, Rémy Cointreau announced that it had entered into
exclusive negotiations with the Larsen Family with a view to acquiring a
majority shareholding in the Larsen Cognac company. Founded in 1926, Larsen
has built up inventories of aged eaux-de-vie which enables it to guarantee the
quality of its production and optimise its purchasing power.
In an uncertain economic environment, particularly in Europe, Rémy Cointreau
confirms the effectiveness of its value and long-term strategy. Management
will continue to implement strict cost control in the second half of the year,
whilst closely monitoring market developments.
After the excellent results in the first half of the year, the Group expects
more moderate growth in the second half, but confirms its objective of
substantially increasing its full-year earnings.
The 2012 half-year Financial Report will be available on the
www.remy-cointreau.com website from 11.00 am today.
Frédéric Pflanz (Analysts)
Tel: 00 33 1 44 13 44 34
Joëlle Jézéquel (Press)
Tel: 00 33 1 44 13 45 15
Tel: 07775 568 500
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