RÃ©my Cointreau (Paris: RCO) achieved sales of â¬ 293.1 million, up + 105.0% (1) organically, driven by continued excellent momentum in the United States and in mainland China, and by a marked improvement in the EMEA zone (2) thanks to the gradual reopening of the HON circuit. The performance also includes the phasing effects of shipments to the United States. The Group increased its sales by + 36.5% at constant exchange rates and perimeter compared to the 1 (st) quarter of 2019/20 (before the pandemic).
Sales rose +95.3% on a reported basis, including a positive scope effect of +0.9% owing to the acquisitions of JR. Brillet and J. de Telmont and an unfavourable currency trend of -10.6%.
All the brands contributed to the Group’s excellent performance. The Cognac division had a remarkable start to the year, up +114.4% in organic terms. The Liqueurs & Spirits division also posted strong growth of +90.5% in organic terms.
Breakdown of sales by division:
Q1 Q1 Change Change Q1 21/22 (EURm) 2021/22 2020/21 Q1 21/22 vs. Q1 20/21 vs. Q1 19/20 Reported Organic Organic Cognac 199.6 98.7 102.3% 114.4% 29.8% Liqueurs & Spirits 85.3 46.1 84.9% 90.5% 58.0% Subtotal: Group Brands 284.9 144.8 96.8% 106.8% 37.0% Partner Brands 8.2 5.3 55.6% 55.3% 21.8% Total 293.1 150.1 95.3% 105.0% 36.5%
The Cognac division achieved remarkable organic growth of +114.4%, driven by all regions. In the United States, RÃ©my Cointreau continued to benefit from sustained demand highlighting the resilience of home consumption and a strong recovery in on-trade distribution. The performance also reflects the phasing effects of shipments, the fourth quarter having been marked by the Group’s determination to control its strategic inventories. The sales performance was equally excellent in mainland China, confirming the recovery initiated in second-half 2020/21.
During the quarter, RÃ©my Martin unveiled its new “Team Up for Excellence” campaign in the United States. The campaign has already won an award at the International Creativity Festival in Cannes(3) . Featuring the singer and actor Usher, it has boosted the brand’s presence in the social media (the number-three spirits brand in The Spirits Business rankings(4) ) and will be led throughout the year in the form of numerous marketing initiatives. In collaboration with Atelier Thiery, the House of RÃ©my Martin also launched a limited-edition XO carafe immortalised by the creation of an artwork by designer Charles Kaisin. Lastly, Louis XIII moved ahead with its direct-to-consumer strategy with the opening of a boutique in Singapore at the One Raffles Place Mall.
Liqueurs & Spirits
Liqueurs & Spirits sales increased +90.5% in organic terms, rising sharply in all regions. In the United States, the strong performance was driven by the success of Cointreau, the development of its portfolio of whiskies and The Botanist gin. In Greater China, the Group continues to draw on the considerable enthusiasm of new generations for its whisky brands, particularly Octomore. The division posted extremely strong growth in the EMEA region, fuelled by the enthusiasm generated by the reopening of the on-trade channel, renewed optimism among retailers ahead of the summer season, and more favourable comparatives.
The Whisky division pursued its growth strategy over the period with the opening of a Bruichladdich pop-up store in central Tokyo and the launch of its first limited-edition The Ternary Project, bringing together three vintages from three single malts. The Botanist also launched a limited-edition Islay Aged Gin. This initial innovation, coinciding with the brand’s 10th anniversary celebration, experiments with ageing in Bordeaux casks for the first time. Lastly, Cointreau rolled out a host of sales and marketing initiatives in its key markets to prepare for and take full advantage of the resumption of the on-trade channel in Europe.
Sales of the Partner Brands increased +55.3% in organic terms. More exposed to Western Europe, they benefited from a favourable base effect.
For 2021/22, RÃ©my Cointreau remains confident in its ability to outperform the exceptional spirits sector. The Group expects an excellent first half, underpinned by very favourable comparatives and shipment phasing effects as well as new and structurally more buoyant consumption trends in the United States.
Being ahead in the unfolding of its 2030 strategic plan and given the favourable environment, the Group has decided to significantly increase its communication investments. The aim will be to support its brands in the rebound and increase their medium-term growth potential by developing their awareness and attractiveness.
Expected good growth in Current Operating Profit will also be tempered by adverse currency effects estimated at between -EUR16 million and -EUR20 million and a scope effect estimated at circa -EUR2 million.
Appendices Q1 2021-2022 sales (April-June 2021) and organic growth by division EURm Reported Forex Scope Organic Reported Reported Organic 21-22 21-22 21-22 21-22 20-21 change change A B C A/C-1 B/C-1 Cognac 199.6 -12.1 0.1 211.6 98.7 102.3% 114.4% Liqueurs & Spirits 85.3 -3.8 1.3 87.8 46. 1 84.9% 90.5% Subtotal: Group Brands 284.9 -15.9 1.4 299.5 144.8 96.8% 106.8% Partner Brands 8.2 0 0 8.2 5.3 55.6% 55.3% Total 293.1 -15.9 1.4 307.6 150.1 95.3% 105.0%
Definitions of alternative performance indicators
RÃ©my Cointreau’s management process is based on the following alternative performance indicators, selected for planning and reporting purposes. The Group’s management considers that these indicators provide users of the financial statements with useful additional information to help them understand the Group’s performance. These alternative performance indicators should be considered as supplementing those included in the consolidated financial statements and the resulting movements.
Organic sales growth:
Organic growth is calculated excluding the impact of exchange rate fluctuations, acquisitions and disposals.
The impact of exchange rates is calculated by converting sales for the current financial year using average exchange rates from the previous financial year.
For acquisitions in the current financial year, sales of acquired entities are not included in organic growth calculations. For acquisitions in the previous financial year, sales of acquired entities are included in the previous financial year but are only included in organic growth calculations for the current year with effect from the anniversary date of the acquisition.
For significant disposals, data is post-application of IFRS 5 (under which sales of entities disposed of are systematically reclassified under “Net earnings from discontinued operations” for the current and previous financial year). This indicator serves to focus on Group performance across both financial years, which local management is more directly capable of influencing.
Regulated information in connection with this press release can be found at www.remy-cointreau.com.
(1) All references to “organic growth” in this press release correspond to sales growth at constant currency and scope.
(2) Europe, Middle East and Africa.
(3) Bronze Lions medal in the Film Lions — Food & Drink category.
(4) The Spirits Business 2021 Brand Champions Report.
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SOURCE: RÃ©my Cointreau Copyright Business Wire 2021