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.
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.