Remy Cointreau Sa · EURONEXT:RCO
Remy Cointreau Sa — H1 2007/08 Earnings Presentation
26 slides from Remy Cointreau Sa's earnings presentation, Nov 27, 2007
Slide 1: Interim Results
Interim Results Six months ended 30 September 2007 27 November 2007 Interim results to 30 September 2007
Slide 2: A Good First Half
A Good First Half Dominique Hériard Dubreuil Interim results to 30 September 2007
Slide 3: Key Figures
Key Figures Organic Published Turnover: €374.4m + 9.8% + 5.7% of which own brands: €329.9m + 10.7% + 6.9% Current operating profit €65.6m + 12.7% + 5.9% Operating margin 17.5% 17.9% Net profit from continuing operations €37.0m + 8.8% Debt: reduced by 14% to €548m Interim results to 30 September 2007
Slide 4: A Good First Half
A Good First Half Significant effect of price increases Accelerated growth in Asia Premium and ultra Premium Marked increase in marketing investment Brands and key markets Continued efforts to improve productivity Post-Maxxium preparation Results in line with our guidance of significant organic grow
Slide 5: Review of Activities
Review of Activities Jean-Marie Laborde Interim results to 30 September 2007
Slide 6: Turnover
Turnover €m Currency impact Activity + 34.7 (14.7) 354.4 Organic growth + 9.8% 374.4 Sept 06 Sept 07 Interim results to 30 September 2007
Slide 7: Breakdown of Turnover
Breakdown of Turnover (by division/geographic area) 17.8% 47.6% 35.3% 20.6% 56.4% 66.1% 34.6% 13.3 % 8.3% Cognac Liqueurs & Spirits Champagne 44.7% 27.3% 16.1% Americas Asia & Others Europe 44.7% 20.4% 34.9% Interim results to 30 September 2007
Slide 8: Current Operating Profit
Current Operating Profit €m Currency Volume/ impact Mix Price A&P Others + 13.4 + 8.2 (11.8) (2.0) (4.1) 61.9 Organic growth + 12.7% 65.6 Sept 06 Sept 07 Operating 17,5 % margin: 17.5% (org. 17.9%) Interim results to 30 September 2007
Slide 9: Net Profit
Net Profit Continuing operations Group share + 8.8% 75.7 Discontinued 41.7 operations and minorities 34.0 37.0 38.1 1.1 34.0 37.0 Sept 06 Sept 07 Sept 06 Sept 07 Interim results to 30 September 2007
Slide 10: Cognac
Cognac Volume sales ('000 cases) Turnover (€m) Organic + 13.0% 803.8 817.0 155.8 167.5 Sept 06 Sept 07 Sept 06 Sept 07 Interim results to 30 September 2007
Slide 11: Cognac
Cognac Current operating profit (€m) Currency Volume/ impact Mix Price A&P Others + 6.1 + 3.5 + 3.0 (7.7) (3.2) 38.7 40.4 Organic growth + 12.8% Sept 06 Sept 07 Operating 24.1% margin: 24.8% (org. 24.7%) Interim results to 30 September 2007
Slide 12: Liqueurs & Spirits
Liqueurs & Spirits Volume sales ('000 cases) Turnover (€m) Organic + 4.9% 2,017 2,086 99.5 102.1 Sept 06 Sept 07 Sept 06 Sept 07 Interim results to 30 September 2007
Slide 13: Liqueurs & Spirits
Liqueurs & Spirits Current operating profit (€m) Currency Volume/ impact Mix Price A&P Others + 3.4 + 4.8 (3.2) (1.2) (0.6) Organic growth + 16.7% 22.8 26,0 Sept 06 Sept 07 Operating 25.5% margin 22.9% (org. 25.5%) Interim results to 30 September 2007
Slide 14: Champagne
Champagne Volume sales ('000 cases) Turnover (€m) Organic + 14.8% 350.8 382.4 53.4 60.3 Sept 06 Sept 07 Sept 06 Sept 07 Interim results to 30 September 2007
Slide 15: Champagne
Champagne Current operating profit (€m) Currency Volume/ impact Mix Price A&P Others + 3.9 (4.1) (0.9) + 0.8 1,4 (0,4) 0,7 Sept 06 Sept 07 Operating Objective to end Mar 08: + 30% organic growth 1.1% margin: 2.7% (org. 1.8%) Interim results to 30 September 2007
Slide 16: Partner Brands
Partner Brands Turnover (€m) Current operating profit (€m) 45.7 44.5 (1.0) (1.5) Sept 06 Sept 07 Sept 06 Sept 07 Interim results to 30 September 2007
Slide 17: Distribution
Distribution Effective and constructive relationships with our partners in Maxxium Good commercial results to date (Asia & Europe) Management team established in China Preparation of the infrastructure in South East Asia Commencement of negotiations with our future distributors (post March 2009) Int
Slide 18: Consolidated Half Year Results
Consolidated Half Year Results Hervé Dumesny Interim results to 30 September 2007
Slide 19: Analysis of Operating Profit
Analysis of Operating Profit Performance (€m) Sept 07 Sept 06 Published Organic Turnover 374.4 354.4 + 5.7% + 9.8% Gross profit 199.1 182.4 + 9.1% + 13.3% Sales & marketing (104.5) (90.7) + 15.2% +18.9% expenses Administrative expenses (36.2) (37.7) (4.0)% (4.0)% Other income & expenses 7.2 7.9 (8.9
Slide 20: Net Profit from Continuing Operations
Net Profit from Continuing Operations (€m) Sept 07 Sept 06 Current operating profit 65.6 61.9 Operating profit 65.5 58.9 Financial charges (25.5) (20.0) Profit before tax 40.0 38.9 Taxation (5.1) (7.7) Share in profits of associated undertakings 2.1 2.8 (Maxxium – Dynasty) Net profit from continuing
Slide 21: Financial Charges
Financial Charges (€m) Sept 07 Sept 06 Debt servicing cost (excluding early repayment) (15.1) (18.7) Repayment of 6.5% bond (7.9) - Maxxium penalty discounting (4.6) - Movement in value of CEDC share 4.2 (5.9) Others (2.1) 4.6 Financial charges (25.5) (20.0) Interim results to 30 September 2007
Slide 22: Net Profit (Group Share)
Net Profit (Group Share) (€m) Sept 07 Sept 06 Net profit from continuing operations 37.0 34.0 Net profit from discontinued operations or in the process of sale 1.1 42.1 Minority interests - (0.4) Net profit – Group share 38.1 75.7 Interim results to 30 September 2007
Slide 23: Financial Debt & Cash Flow
Financial Debt & Cash Flow (€m) Sept 07 Sept 06 Net debt 548.2 637.3 Operating cash flow from continuing operations 20.6 14.4 Cash flow before financing activities 38.7 152.9 Net debt/EBITDA ratio = 2.92 Interim results to 30 September 2007
Slide 24: Balance Sheet at 30 September - Assets
Balance Sheet at 30 September - Assets (€m) 2007 2006 Intangible assets 800.9 797.4 Investments in associates 118.7 119.6 Other investments 51.4 105.5 Deferred tax assets 12.7 12.0 Non-current assets 983.7 1,034.5 Inventories 806.9 789.8 Trade accounts receivable 263.1 261.9 Income tax recoverable 2
Slide 25: Balance Sheet at 30 September - Liabilities
Balance Sheet at 30 September - Liabilities (€m) 2007 2006 Shareholders’ equity 840.8 940.3 Non-current liabilities 841.8 720.2 Current liabilities 445.6 475.0 Total liabilities 2,128.2 2,135.5 Interim results to 30 September 2007
Slide 26: 2007/08 Outlook
2007/08 Outlook Continuation and acceleration of H1 trend: Movement upmarket Increased strength of Champagne Dynamism of Asia and Russia Renewed confidence Significant organic growth in current operating profit confirmed Interim results to 30 September 2007