Rémy Cointreau annual sales up +2.9% as operating profit increases +14.1%

Moodie Davitt snapshot: Rémy Cointreau results in the 12 months to 31 March 2018
Sales up +2.9% to €1.127.0 million
+7.2% in organic terms
Current operating profit up +14.1% (organic)
Travel retail contributes to strong momentum of House of Rémy Martin
St-Rémy performs well in travel retail; Metaxa rebounds

Source: The Moodie Davitt Report

Rémy Cointreau has confirmed sales of €1.127.0 million in the 12 months to 31 March 2018, a reported rise of +2.9% year-on-year. In organic terms (at constant exchange rates and scope), sales were up +7.2%, thanks to strong +9.2% growth in the Group Brands segment.

In organic terms, current operating profit rose +14.1% and the current operating margin reached 22% (up 1.3 points). The rise in profitability was attributed to a healthy increase in the gross margin fuelled by the performance of spirits over US$50 and a controlled increase in overheads.

Adjusting for currency and scope effects, operating profit was up +4.7%.

Excluding non-recurring items, net profit was up +12% (+22% in organic terms) to €151.3 million. Consolidated net profit was down -22.1% to €148.2 million.

The positive momentum of The House of Rémy Martin (up +13.2% in organic sales, with volumes rising +6%) was driven by the Asia Pacific region, including travel retail and Greater China. There was also a “good performance” from Americas travel retail and the company noted “strong growth” in EMEA travel retail.

Source (all charts): Rémy Cointreau Click on image to enlarge
Click on image to enlarge

Liqueurs & Spirits saw organic sales fall -1.0% with volumes down -4.9%. Rémy Cointreau noted good growth for St-Rémy in travel retail while Metaxa rebounded, boosted by improved traffic from Russian travellers.

Rémy Cointreau has revised its target to increase the current operating margin over the three-year period ending March 2020. For the financial years 2017/18, 2018/19 and 2019/2020, it now anticipates a cumulative increase of +2.4-3.0 points (compared with the target of +0.8-1.8 points set last year) at constant exchange rates and scope.

For 2018/19, Rémy Cointreau anticipates another year of growth in current operating profit, at constant exchange rates and scope.

Click on image to enlarge
Click on image to enlarge
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