Consolidated annual results
Finance
Rémy Cointreau’s consolidated sales came to €1,194.1 million in 2023-2024, -19.2% on an organic basis (+16.2% from 2019-2020). Sales as reported were down -22.9%, including -3.7% in currency effect due primarily to trends in the Chinese renminbi and the US dollar.
Current operating profit was €304.4 million, down 27.8% on an organic basis (+34.9% from 2019-2020).
Above and beyond a record level of comparison, this figure reflects the significant fall in sales, which was partly offset by meaningful cost-cutting that generated €145 million in savings, of which 45% will be structural. Current operating margin declined by -3.0 points on an organic basis to total 25.5%.
€1,194.1M
Consolidated sales (-19.2% vs 2022-2023; +16.2% vs 2019-2020)
€304.4M
Current operating profit (-27.8% vs 2022-2023; +34.9% vs 2019-2020)
25,5%
Current operating margin (-3 points vs 2022-2023)
Current operating profit
Current operating profit (COP) came to €304.4 million, down -27.8% on an organic basis (+34.9% compared to 2019-2020). This includes a -27.6% organic fall in COP for Group brands, and a -€6.0 million reduction in the holding company’s expenses that illustrates cost-cutting in a tough economic environment.
This figure includes a negative currency effect (-€5.7 million) linked primarily to adverse trends in the Chinese renminbi and the US dollar.
The average euro-renminbi conversion rate worsened from 7.14 in 2022-2023 to 7.79 in 2023-2024, while the average collection rate (linked to the Group’s hedging policy) deteriorated from 7.38 in 2022-2023 to 7.59 in 2023-2024. The average euro-dollar conversion rate worsened from 1.04 in 2022-2023 to 1.08 in 2023-2024, and the average collection rate improved from 1.11 in 2022-2023 to 1.10 in 2023-2024.
Current operating margin
Current operating margin stood at 25.5%, down -3.0 points on an organic basis, and down -2.3 points as reported.This reflects the combined impact of:
- a 1.3 point decline in gross margin on an organic basis to 71.2%, hit by the high basis of comparison (+4.0 points from 2019-2020), rising production costs, and a negative brand-mix effect;
- a stabilization of the marketing and communication spend ratio (spending up by 3.5 points from 2019-2020);
- a controlled increase of the overhead costs ratio (-1.9 point on an organic basis) reflecting a 12.0% organic reduction in the cost base (down by 2.9 points from 2019-2020);
- a favorable currency effect: +0.7 point.
Current operating profit
Other operating income and expenses totaled -€12.8 million in 2023-2024 compared with -€3.1 million in 2022-2023, and consisted mainly of the cost of restructuring distribution networks in the US and Europe.
Net financial expense stood at -€38.5 million in 2023-2024 (vs -€17.6 million in 2022-2023), amid higher interest rates and renewal of long-term credit lines.
Tax charges came to €69.4 million, setting the effective tax rate at 27.4% in 2023-2024 (27.1% excluding non-recurring items). This compares with 28.4% in 2022-2023 (28.3% excluding non-recurring items) and reflects geographical mix.
Net Profit Group share stood at €184.8 million, down -37.1% as reported (+52.7% on an organic basis when compared with 2019-2020), setting net margin at 15.5%, down -3.5 points as reported.
Earnings per share (EPS) Group share totaled €3.64, down -37.1% as reported compared to 2022-2023. Excluding non-recurring items, EPS came to €3.84.
Net debt stood at €649.7 million, or €113.1 million more than at 31 March 2023, following the strong drop in EBITDA. Even so, free cash flow improved sharply in the second half to total +€13.8 million full year (of which +€112.8 million in the second half). The ratio of net debt/EBITDA was 1.68 on 31 March 2024 compared with 0.84 one year earlier.
Return on capital employed (ROCE) came to 15.5% on 31 March 2024, down -8.9 points (-8.6 points on an organic basis). This followed a fall in profitability of Group brands combined with ongoing strategic purchases of eaux-de-vie and investments that weighed on capital employed.
At the annual general meeting to be held on 18 July 2024, the Board of Directors will propose the payment of an ordinary dividend of €2.0 per share.
Payment will include an option payable in cash or shares for the totality of the dividend paid out. Subject to approval by shareholders, the Group’s majority shareholder Orpar has informed Rémy Cointreau that it will ask for the 2023-2024 dividend to be paid entirely in shares, demonstrating its confidence in the Group’s future growth.