Remy Cointreau Sa · EURONEXT:RCO

Remy Cointreau Sa — H1 2016/17 Earnings Presentation

17 slides from Remy Cointreau Sa's earnings presentation, Oct 18, 2016

  1. Slide 1: Fiscal Year 2016/17 6 months sales ended 30 September 2016

    Fiscal Year 2016/17 6 months sales ended 30 September 2016 18.10.16

  2. Slide 2: Key Messages

    Key Messages • Strong Q2 organic sales growth (+7.4%) drives solid H1 (+4.1%) • H1 performance led by Group’s brands (+5.1%) • Improved depletion trends in H1 vs. FY15/16: ‒ Strong growth in the US ‒ Improving consumer demand in Greater China, in particular for superior qualities ‒ Upturn in Russia

  3. Slide 3: H1 2016/17 Sales Analysis

    H1 2016/17 Sales Analysis €m H1 15/16 Organic Currency H1 16/17 Reported growth: +2.5% 513.4 500.7 +4.1% -1.6% 18.10.16 - 6 months sales ending 30 September 2016 3

  4. Slide 4: Currency Impact on H1 2016/17 Sales

    Currency Impact on H1 2016/17 Sales Negative currency impact : EUR8.1m Other currencies 6% USD 36% CNY 38% GBP 20% 18.10.16 - 6 months sales ending 30 September 2016 4

  5. Slide 5: Quarterly Organic Sales Growth

    Quarterly Organic Sales Growth FY15/16: +0.3% (Group Brands: +1.7%) H1: +4.1% (Group Brands: +5.1%) Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 15,0% 10.7% 9.8% 9.5% 10,0% 7.4% 5.6% 5,0% 3.2% 0.0% 0,0% ‐0.6% ‐1.3% ‐3.2% ‐5,0% ‐10,0% ‐9.0% ‐9.1% ‐15,0% Organic sales growth ‐‐ Group Organic

  6. Slide 6: 1H16/17 Organic Growth by Region

    1H16/17 Organic Growth by Region Americas EMEA Asia-Pacific Group 15,0% +13.6% 10,0% +4.1% 5,0% +0.6% 0,0% ‐5,0% (5.3%) ‐10,0% 18.10.16 - 6 months sales ending 30 September 2016 6

  7. Slide 7: H1 2016/17 Organic Trends by Region (1)

    H1 2016/17 Organic Trends by Region (1) Asia-Pacific sales down 5.3% in H1 2016/17  Positive sales growth in Greater China in H1 offset by Travel Retail Asia and Japan  Greater China showing good depletion trends in H1  Depletions up mid-single digits in volume and value, led by improved trends o

  8. Slide 8: H1 2016/17 Organic Trends by Region (2)

    H1 2016/17 Organic Trends by Region (2) Europe, Middle East & Africa sales up 0.6% in H1 2016/17  Region penalized by the end of the distribution contract with Piper & Charles Heidsieck (-2pp)  Western Europe: flat growth  Good depletion trends in the UK and in France,…  …but weakness in Belgium

  9. Slide 9: H1 2016/17 Organic Growth by Product Division

    H1 2016/17 Organic Growth by Product Division Liqueurs & Group Partner Total Rémy Martin Spirits Brands Brands Group 7,0% +5.1% +5.1% +5.1% 5,0% +4.1% 3,0% 1,0% ‐1,0% ‐3,0% ‐3.1% ‐5,0% 18.10.16 - 6 months sales ending 30 September 2016 9

  10. Slide 10: Rémy Martin (+5.1% organic growth in H1)

    Rémy Martin (+5.1% organic growth in H1) Asia-Pacific  Modest sales decline in H1 (despite growth in Q2) due to Travel Retail weakness  Greater China: positive sales growth and sound depletions (volume/value depletions up mid-single digit) Americas  Sales up double-digits in H1  US volume deplet

  11. Slide 11: Rémy Martin: Marketing Initiatives

    Rémy Martin: Marketing Initiatives Opening of a Louis XIII boutique in Beijing 18.10.16 - 6 months sales ending 30 September 2016 11

  12. Slide 12: Liqueurs & Spirits (+5.1% organic growth in H1)

    Liqueurs & Spirits (+5.1% organic growth in H1) After a challenging FY15/16, Liqueurs & Spirits are back to growth in H1 2016/17, led by its main markets (Europe and US) Cointreau  Solid sales growth, led by all three regions  Strong US depletions trends, led by both channels (on and off trade) 

  13. Slide 13: Liqueurs & Spirits (+5.1% organic growth in H1)

    Liqueurs & Spirits (+5.1% organic growth in H1) Mount Gay  H1 sales decline resulting from a new round of price increases on Eclipse in the US  Positive mix gains led by the successful international roll-out of Black Barrel and XO  US volume depletions volatility mainly reflecting upgrading strat

  14. Slide 14: Liqueurs & Spirits: Marketing Initiatives

    Liqueurs & Spirits: Marketing Initiatives The Art of La Soirée with Cointreau in the US 18.10.16 - 6 months sales ending 30 September 2016 14

  15. Slide 15: Partner Brands (-3.1% organic decline in H1)

    Partner Brands (-3.1% organic decline in H1) • Sales decline reflects the end of the distribution contract of Piper Heidsieck and Charles Heidsieck in EMEA and Travel Retail (EUR5M loss) • Other Third-Party spirits distributed in EMEA grew double-digits in H1 18.10.16 - 6 months sales ending 30 Sept

  16. Slide 16: 2016/17 Outlook Confirmed

    2016/17 Outlook Confirmed • H1 2016/17 organic sales performance in-line with Group’s expectations • Maintains guidance of delivering positive growth in Current Operating Profit, at constant exchange rate and scope, for the financial year 2016/17 18.10.16 - 6 months sales ending 30 September 2016 16

  17. Slide 17: Questions & Answers

    Questions & Answers 18.10.16

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