Net profit attributable to the Group
Excluding non-recurring items
Rémy Cointreau reported consolidated sales of €1,548.5 million in 2022/23, up +10.1% on an organic basis (and +43.6% compared to full-year 2019/20). This strong showing reflects steep gains from in Price-Mix (+10.1%), in line with the Group’s value-based strategy, and steady volumes.
The Americas generated full-year sales growth of +2.5% in 2022/23 (+58.4% compared with 2019-20). In APAC, sales rose by a very strong +22.7% (+49.1% compared with 2019/20). Last but not least, sales growth in the EMEA region came to +11.0%, returning to levels observed in 2019/20 (+8.8%).
Current Operating Profit came in at €429.6 million, a +16.2% organic rise (+76.8% compared to full-year 2019/20) and +28.5% as reported. Current Operating Margin improved by +1.4 points on an organic basis to stand at 27.7% (+5.0 points from 2019/20).
Consolidated results
Operating profit came in at €426.5 million, up +33.2% as reported, after -€3.1 million in non-recurring items. This comes primarily from the recovery of provisions for international customs risks offset by the write-down of intangible assets linked to the Westland brand and a charge linked to the anticipated unwinding of hedging contracts for ruble exposure in the current geopolitical context.
Net financial expense rose slightly from -€13.2 million in 2021/22 to -€17.6 million in 2022/23 reflecting higher interest rates.
Tax expense stood at €116.3 million, setting the effective tax rate at 28.4% (28.3% excluding non-recurring items) compared with 31.1% as reported in 2021/22 (29.3% excluding non-recurring items). This includes a decline in the corporate tax rate in France.
Net profit attributable to the Group came to €293.8 million, up +38.3% as reported, for a net margin of 19.0%, up +2.8 points as reported.
Excluding non-recurring items, net profit attributable to the Group was €296.6 million, up +30.0% as reported for a net margin of 19.2%, up +1.8 points as reported.
€1,548.5
MILLION REPORTED CONSOLIDATED SALES IN 2022/23
33.2%
up on operating profit as reported
€293.8
million net profit attributable to the group
30%
2.5%
Growth on The Americas in 2022/23
Group EPS came to €5.79, up +37.5% from 2021/22 as reported and more than doubled compared with 2019/20. Excluding non-recurring items, EPS was €5.85.
Net debt was €536.6 million, an increase of €183.3 million from 31 March 2022. In addition to free cash flow, this increase reflects a lower level of OCEANE conversion (€42.9 million in 2022-23 vs €154.6 million in 2021/22) and the payment of a cash dividend totaling €111.0 million. It resulted in a net debt/EBITDA ratio of 0.84 at 31 March 2023 compared with 0.79 at 31 March 2022.
At the annual general meeting to be held on 20 July 2023, the Board of Directors of Rémy Cointreau will propose the payment of an ordinary dividend of €2.0 per share in cash and an exceptional dividend of €1.0 per share, also payable in cash. This dividend reflects the very good results achieved in 2022/23 as well as the Board’s and the management team’s high level of confidence in the Group’s growth outlook.
Net debt was €536.6 million, an increase of €183.3 million from 31 March 2022. In addition to free cash flow, this increase reflects a lower level of OCEANE conversion (€42.9 million in 2022-23 vs €154.6 million in 2021/22) and the payment of a cash dividend totaling €111.0 million. It resulted in a net debt/EBITDA ratio of 0.84 at 31 March 2023 compared with 0.79 at 31 March 2022.
« Significant improvements in the profitability of Group brands offset continued strategic purchases of eaux-de-vie that adversely affected capital employed. »
Return on Capital Employed (ROCE) came to 24.4% for the year ended 31 March 2023, up 2.2 points (-0.2 points on an organic basis). Significant improvements in the profitability of Group brands offset continued strategic purchases of eaux-de-vie that adversely affected capital employed.At the annual general meeting to be held on 20 July 2023, the Board of Directors of Rémy Cointreau will propose the payment of an ordinary dividend of €2.0 per share in cash and an exceptional dividend of €1.0 per share, also payable in cash. This dividend reflects the very good results achieved in 2022/23 as well as the Board’s and the management team’s high level of confidence in the Group’s growth outlook.
Current Operating Profit
Current Operating Margin
Current Operating Profit (COP) came to €429.6 million full year, up +28.5% as reported and +16.2% on an organic basis. This was a new record for the Group, and sets it firmly ahead of schedule in achieving its 2030 strategic roadmap.
This performance includes some very positive currency effects (+€41.0 million), due primarily to trends in the US dollar and the renminbi. The average EURO/USD conversion rate improved from 1.16 in 2021-22 to 1.04 in 2022/23, while the average collection rate (linked to the Group’s hedging policy) came in at 1.11 in 2022/23 compared with 1.17 in 2021/22.
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€429.6Million of current operating profit Up +28.5% as reported
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28.5%Up as reported of current operating profit
Current Operating Margin stood at 27.7%, up 1.4 points on an organic basis and up 2.3 points as reported. This rise reflects:
– A strong organic increase in gross margin, which reach a new all-time high of 71.3% (+2.6% on an organic basis, up 4.0 points from 2019/20), supported by a very positive Price-Mix effect
– Tight control of overhead costs (ratio down by 0.1 points on an organic basis, for a 4.7-point decrease from 2019/20)
– Increased investment in marketing and communication (1.3-point rise in ratio on an organic basis, for a 3.7-point increase from 2019/20).
– Very favorable currency effect, adding +0.9 points in 2022/23.
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27.7%Current Operating Margin Up 1.4 points
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71.3%Organic increase in gross margin