Remy Cointreau SA · EURONEXT:RCO
Remy Cointreau SA — FY2013 Earnings Presentation
28 slides from Remy Cointreau SA's earnings presentation, Jun 12, 2013
Slide 1: We seek nothing but Perfection – Preliminary Results
We seek nothing but Perfection Preliminary Results Year ended 31 March 2013 London 12 June 2013
Slide 2: François Hériard Dubreuil, Chairman
François Hériard Dubreuil Chairman
Slide 3: Strategic choices
Strategic choices We seek nothing but Perfection Relevant strategic choices: ■ Move upmarket of the entire brand portfolio ■ Commitment to very high quality products ■ Ambitious pricing policy generates value ■ Sustained policy of innovation creates growth Confidence in the medium and long term
Slide 4: Performances
Performances We seek nothing but Perfection % Change Organic Published ■ Sales €1,193.3m + 8.8% +16.3% of which own brands: €958.9m +10.3% +18.6% ■ Current operating profit €245.4m +12.3% +18.1% ■ Current operating margin 20.6% 20.9% 20.6% ■ Net profit (exc. non-recurring items) €151.5m +22.3% ■ Net
Slide 5: Review of Activities
Review of Activities Jean-Marie Laborde Chief Executive
Slide 6: Another Year of Growth
Another Year of Growth We seek nothing but Perfection ■ Growth in all regions of the world ■ Double-digit growth in Asia and the US ■ Growth in Western Europe ■ Sustained growth in Russia ■ Significant investment but targeted by brand and by market ■ Sales teams strengthened in key markets ■ Positiv
Slide 7: Another Year of Growth
Another Year of Growth We seek nothing but Perfection Brands ■ Rémy Martin: fourth year of double-digit growth ■ Continued value growth (price + mix) ■ Controlled volume growth: + 4.5% ■ Liqueurs & Spirits: another year of growth ■ Cointreau: strong development in the US, good results in Western Eur
Slide 8: Group Sales
Group Sales We seek nothing but Perfection €m Currency impact Activity +90.1 +77.1 Published +16.3% Organic +8.8% 1,026.1 1,193.3 +€167.2m March 12 March 13 Preliminary Results at 31 March 2013 8
Slide 9: Breakdown of Sales by Activity
Breakdown of Sales by Activity We seek nothing but Perfection % Change Published Organic* 12 Months Rémy Martin +21.5 +12.7 Liqueurs & Spirits +10.8 + 3.8 Sub-total – Group brands +18.6 +10.3 Partner brands + 7.6 + 3.0 Total +16.3 + 8.8 *On a like-for-like basis and at constant exchange rates Prelim
Slide 10: Breakdown of Sales
Breakdown of Sales We seek nothing but Perfection by activity by geographic area Sales: €1,193 million Liqueurs & Partner Americas Spirits Brands 33.0% 20.0% 19.7% Europe/ Middle East/ Africa 27.1% Rémy Martin Asia-Pacific 60.3% 39.9% Preliminary Results at 31 March 2013 10
Slide 11: Breakdown of Sales by Geographic Area
Breakdown of Sales by Geographic Area We seek nothing but Perfection Rémy Martin Liqueurs & Spirits €719.8 million €239.1 million Americas Europe/ Americas Europe/ 26.8% Middle East/ 34.0% Middle East/ Africa Africa 13.0% 56.6% Asia-Pacific Asia-Pacific 60.2% 9.4% Preliminary Results at 31 March 201
Slide 12: Growth in Current Operating Profit
Growth in Current Operating Profit We seek nothing but Perfection €m Currency Group Volume Price/ A&P Other impact structure Mix effect +37.3 +42.5 (21.4) +12.0 +0.1 (32.8) 207.7 245.4 Published +18.1% Organic +12.3% March 12 March 13 Operating 20.6% Margin: 20.2% (org. 20.9%) Preliminary Results at
Slide 13: Net Profit
Net Profit We seek nothing but Perfection €m Net profit exc. non-recurring items Net profit – Group share +22.3% +17.7% 123.9 151.5 110.8 130.4 March 12 March 13 March 12 March 13 Preliminary Results at 31 March 2013 13
Slide 14: Rémy Martin
Rémy Martin We seek nothing but Perfection Growth in sales +12.7% organic in volume + 4.5% Continued innovation Double-digit growth €m Centaure de diamant +19.8%* +21.9%* +21.5%* 800 719.8 600 592,5 486.0 VSOP Mature Cash Finish 400 200 Centaure 0 March 2011 March 2012 March 2013 * At published exch
Slide 15: Rémy Martin
Rémy Martin We seek nothing but Perfection Current Operating Profit Currency Volume Price/ A&P Other (€m) impact Mix +33.3 +36.2 (15.6) +11.5 (21.8) Published +25,2% 173.0 Organic +18,6% 216.6 March 12 March 13 Operating 30.1% Margin: 29.2% (org. 30.7%) Preliminary Results at 31 March 2013 15
Slide 16: Liqueurs & Spirits
Liqueurs & Spirits We seek nothing but Perfection Growth in sales + 3.9% organic in volume - 0.6% A premium and diversified portfolio Breakdown of sales Liqueur € millions Cointreau +0.7%* +3.7%* +10.8%* 239.1 250 215,8 208.0 Rum 200 Mount Gay Black Barrel 150 100 50 Single Malt Scotch Whisky 0 Brui
Slide 17: Liqueurs & Spirits
Liqueurs & Spirits We seek nothing but Perfection Current Operating Profit Currency Group Volume Price/ A&P Other (€m) impact structure Mix effect +4.0 +1.2 +1.3 +0.1 (5.8) (8.2) Published (14.1)% Organic (16.7)% 52.6 45.2 March 12 March 13 Operating 18.9% Margin: 24.4% (org. 19.5%) Preliminary Resu
Slide 18: Partner Brands
Partner Brands We seek nothing but Perfection Sales Current Operating Profit €m €m 250 234,4 5,0 213,8 217,8 4,2 4,0 3,8 200 150 3,0 2,1 100 2,0 50 1,0 0 0,0 March 2011 March 2012 March 2013 March 2011 March 2012 March 2013 Preliminary Results at 31 March 2013 18
Slide 19: Consolidated Preliminary Results
Consolidated Preliminary Results Frédéric Pflanz Chief Operating Officer & Finance Director
Slide 20: Analysis of Current Operating Profit
Analysis of Current Operating Profit We seek nothing but Perfection (€m) 2012 2013 Sales 1,026.1 1,193.3 Gross profit 630.0 736.9 in % 61.4% 61.8% Sales & marketing expenses (344.8) (403.3) Administrative expenses (79.0) (89.8) Other income & expenses 1.5 1.6 Current operating profit 207.7 245.4 Cur
Slide 21: Net Profit
Net Profit We seek nothing but Perfection (€m) 2012 2013 Current operating profit 207.7 245.4 Other operating income/(expenses) (3.0) (7.5) Operating profit 204.7 237.9 Financial charges (35.3) (20.0) Profit before tax 169.4 217.9 Taxation (47.3) (72.0) Share in profit of associates (0.4) (15.5) Net
Slide 22: Breakdown of Financial Charges
Breakdown of Financial Charges We seek nothing but Perfection (€m) 2012 2013 Cost of gross financial debt (20.7) (23.9) Investment income 2.0 3.0 Sub-total (18.7) (20.9) Impact of the portfolio of interest rate instruments (9.2) (1.2) Effect of IFRS 5 reclassification (disposal of Champagne) 1.0 - E
Slide 23: Financial Debt & Cash Flow
Financial Debt & Cash Flow We seek nothing but Perfection (€m) 2012 2013 Net debt (at year end) 188.6 265.5 Cash flow from operating activities of continuing operations 100.6 132.0 Impact of changes in consolidation scope 83.3 (151.8) Other (inc. capital expenditure) (15.5) (25.2) Increase/(decrease
Slide 24: Foreign Exchange Hedging Impact
Foreign Exchange Hedging Impact We seek nothing but Perfection Average €/US$ rate 1.41 1.39 1.37 Hedged rate 1.41 1.35 1.34 1.32 1.29 2009/10 2010/11 2011/12 2012/13 March March March March Preliminary Results at 31 March 2013 24
Slide 25: Sound Financial Position
Sound Financial Position We seek nothing but Perfection Assets Liabilities 2012 2013 2012 2013 Non-current assets 789 843 Shareholders’ equity 976 1,095 Current assets 1,010 1,237 of which inventories 793 946 Current and non- 634 720 of which trade receivables 208 256 current liabilities and others
Slide 26: Highlights of the Financial Year
Highlights of the Financial Year We seek nothing but Perfection ■ 5 June 2012 – Following the renewal of the syndicated credit facility, the Group has €600 million in long-term resources ■ 3 September 2012 – Acquisition of Bruichladdich Distillery and integration within the Liqueurs & Spirits divisi
Slide 27: Post-Balance Sheet Events
Post-Balance Sheet Events We seek nothing but Perfection ■ 10 June 2013 – Rémy Cointreau announced that it had signed an agreement with the Nordic group, Altia, in respect of the transfer of Larsen Cognac, including the brand, industrial and commercial assets and inventories necessary for the entity
Slide 28: Outlook for 2013/14
Outlook for 2013/14 We seek nothing but Perfection In a world economy clearly lacking visibility, particularly in Europe: ■ Confidence in our very high quality brands ■ Priority in respect of high added value and high growth markets ■ Development in new territories: expansion of the network ■ Ongoin