Remy Cointreau Highlights:
-- Current Operating Profit: organic growth of 15%
-- Net Profit: up 56%
For the second consecutive year, Remy Cointreau (Pink Sheets:REMYF) (Paris:RCO) (ISIN:FR0000130395) has achieved strong organic growth of 14.9% in current operating profit to EUR 141.8 million, on turnover of EUR 798.3 million. The operating margin (organic) was therefore 18.7% (a 1.7 point increase).
These good results arise from a number of factors which will have a positive impact in the future:
-- growth in key brands and their movement up market, as well as continued price increases
-- refocused and sustained marketing expenditure
-- a significant increase in profit from operations overall, and particularly for cognac, and
-- a reduction in debt.
The year was also marked by the Group refocusing on its key brands, following the disposal, in particular, of Bols.
Key figures -0- 31 31 March March (EUR million - IFRS) 2006* 2005* Performance % Gross Organic** ----------------------------------- ------- ------- ------- --------- Turnover 798.3 748.3 + 6.7 + 4.5 Current operating Profit 141.8 127.4 + 11.3 + 14.9 Operating margin 17.8% 17.0% - 18.7% Profit from continuing operations 55.3 64.9 - - Profit from discontinued operations 18.6 (9.6) - - Net profit - Group share 77.8 49.8 + 56.2 - Earnings per share (EUR) 1.72 1.13 - - Number of shares (millions) 45,320 44,247 - - ----------------------------------- ------- ------- ------- ---------
(*) After reclassification of profit from discontinued operations or in the process of disposal
(**) Organic performance is stated after the effect of currency and changes in Group structure
Divisional analysis of profit from operations -0- Organic (EUR million - IFRS) 31 March 2006 31 March 2005 growth % ------------------------------- ------------- ------------- --------- Cognac 76.3 68.0 + 20.0 Liqueurs & Spirits 51.9 46.9 + 9.7 Champagne 9.7 8.3 + 14.2 Partner brands 3.9 4.2 (9.8) Profit from operations 141.8 127.4 + 14.9 ------------------------------- ------------- ------------- ---------
Cognac - Remy Martin achieved remarkable growth of 20% in current operating profit by concentrating on developing sales of Fine Champagne cognac. The operating margin increased to 23.6% from 21.8% the previous year, with a continued sustained level of marketing investment.
Liqueurs & Spirits - The division reported organic growth in current operating profit of 9.7% and achieved a net operating margin of 23.6%, compared with 22.3% the previous year. Cointreau had a very good year, with continued strong support in the American market. St Remy brandy confirmed its strength while Metaxa and Mount Gay rum continued to develop.
Champagne - With strong dynamism in sales of Piper-Heidsieck, profit from operations increased by 14.2% while marketing investment grew strongly. The operating margin improved to 7.9% compared with 7.2% the previous year.
Partner brands - A good performance from the partner brands distributed by Remy Cointreau US, sustained by the strength of the Scotch whiskies and new Californian wines, which became part of the portfolio this year, generated an operating profit of EUR 3.9 million after allocation of distribution and central costs.
Consolidated results
Turnover at EUR 798.3 million increased by 6.7% and 4.5% on a like-for-like basis. In accordance with IFRS, revenue from operations that were sold in the 2005/06 financial year (Bols, as well as Cognac de Luze, in the process of sale) were reclassified as "discontinued operations or in the process of disposal."
Current operating profit was EUR 141.5 million, an increase of 11.3%, after an unfavourable euro/dollar exchange rate. Organic growth was 14.9%.
Operating margin was 17.8%. At constant exchange rates, it rose to 18.7%, a 1.7 point increase on last year.
Financial charges rose by EUR 7.8 million to EUR 63.1 million. This was due to a charge of EUR 5.1 million related to the application of IAS 32 and 39 at 1 April 2005, and to exceptional charges for the refinancing of the syndicated credit, renegotiated in June 2005 on improved conditions.
Profit from continuing operations was EUR 55.3 million after tax, compared with EUR 64.9 million the previous year. This included a restructuring provision and a charge in respect of tax audits in progress.
Profit from discontinued operations of EUR 18.6 million included the operating profit after tax of operations sold and in the process of sale and, solely for Bols Vodka, the net gain on disposal.
Net profit - Group share after non-recurring items, was EUR 77.8 million.
Net financial debt was EUR 771.5 million. It decreased by 11% or EUR 91.3 million, including the positive effect of EUR 23 million for the first application of IAS 32 and 39 at 1 April 2005. The positive impact of the Bols Liqueurs & Spirits' disposal, finalised in April 2006, will be taken into account in the next financial year.
Shareholders' equity - Group share amounted to EUR 918.7 million, an increase of EUR 49.8 million over the previous year.
A dividend of EUR 1.10 will be proposed at the Annual General Meeting to be held on 27 July 2006.
Outlook
Remy Cointreau continues its strategy of value creation by capitalising on its key brands and strong positions in principal world markets, essential growth drivers.
Once more, the Group forecasts double-digit growth in current operating profit for the 2005/06 financial year.
-- Current Operating Profit: organic growth of 15%
-- Net Profit: up 56%
For the second consecutive year, Remy Cointreau (Pink Sheets:REMYF) (Paris:RCO) (ISIN:FR0000130395) has achieved strong organic growth of 14.9% in current operating profit to EUR 141.8 million, on turnover of EUR 798.3 million. The operating margin (organic) was therefore 18.7% (a 1.7 point increase).
These good results arise from a number of factors which will have a positive impact in the future:
-- growth in key brands and their movement up market, as well as continued price increases
-- refocused and sustained marketing expenditure
-- a significant increase in profit from operations overall, and particularly for cognac, and
-- a reduction in debt.
The year was also marked by the Group refocusing on its key brands, following the disposal, in particular, of Bols.
Key figures -0- 31 31 March March (EUR million - IFRS) 2006* 2005* Performance % Gross Organic** ----------------------------------- ------- ------- ------- --------- Turnover 798.3 748.3 + 6.7 + 4.5 Current operating Profit 141.8 127.4 + 11.3 + 14.9 Operating margin 17.8% 17.0% - 18.7% Profit from continuing operations 55.3 64.9 - - Profit from discontinued operations 18.6 (9.6) - - Net profit - Group share 77.8 49.8 + 56.2 - Earnings per share (EUR) 1.72 1.13 - - Number of shares (millions) 45,320 44,247 - - ----------------------------------- ------- ------- ------- ---------
(*) After reclassification of profit from discontinued operations or in the process of disposal
(**) Organic performance is stated after the effect of currency and changes in Group structure
Divisional analysis of profit from operations -0- Organic (EUR million - IFRS) 31 March 2006 31 March 2005 growth % ------------------------------- ------------- ------------- --------- Cognac 76.3 68.0 + 20.0 Liqueurs & Spirits 51.9 46.9 + 9.7 Champagne 9.7 8.3 + 14.2 Partner brands 3.9 4.2 (9.8) Profit from operations 141.8 127.4 + 14.9 ------------------------------- ------------- ------------- ---------
Cognac - Remy Martin achieved remarkable growth of 20% in current operating profit by concentrating on developing sales of Fine Champagne cognac. The operating margin increased to 23.6% from 21.8% the previous year, with a continued sustained level of marketing investment.
Liqueurs & Spirits - The division reported organic growth in current operating profit of 9.7% and achieved a net operating margin of 23.6%, compared with 22.3% the previous year. Cointreau had a very good year, with continued strong support in the American market. St Remy brandy confirmed its strength while Metaxa and Mount Gay rum continued to develop.
Champagne - With strong dynamism in sales of Piper-Heidsieck, profit from operations increased by 14.2% while marketing investment grew strongly. The operating margin improved to 7.9% compared with 7.2% the previous year.
Partner brands - A good performance from the partner brands distributed by Remy Cointreau US, sustained by the strength of the Scotch whiskies and new Californian wines, which became part of the portfolio this year, generated an operating profit of EUR 3.9 million after allocation of distribution and central costs.
Consolidated results
Turnover at EUR 798.3 million increased by 6.7% and 4.5% on a like-for-like basis. In accordance with IFRS, revenue from operations that were sold in the 2005/06 financial year (Bols, as well as Cognac de Luze, in the process of sale) were reclassified as "discontinued operations or in the process of disposal."
Current operating profit was EUR 141.5 million, an increase of 11.3%, after an unfavourable euro/dollar exchange rate. Organic growth was 14.9%.
Operating margin was 17.8%. At constant exchange rates, it rose to 18.7%, a 1.7 point increase on last year.
Financial charges rose by EUR 7.8 million to EUR 63.1 million. This was due to a charge of EUR 5.1 million related to the application of IAS 32 and 39 at 1 April 2005, and to exceptional charges for the refinancing of the syndicated credit, renegotiated in June 2005 on improved conditions.
Profit from continuing operations was EUR 55.3 million after tax, compared with EUR 64.9 million the previous year. This included a restructuring provision and a charge in respect of tax audits in progress.
Profit from discontinued operations of EUR 18.6 million included the operating profit after tax of operations sold and in the process of sale and, solely for Bols Vodka, the net gain on disposal.
Net profit - Group share after non-recurring items, was EUR 77.8 million.
Net financial debt was EUR 771.5 million. It decreased by 11% or EUR 91.3 million, including the positive effect of EUR 23 million for the first application of IAS 32 and 39 at 1 April 2005. The positive impact of the Bols Liqueurs & Spirits' disposal, finalised in April 2006, will be taken into account in the next financial year.
Shareholders' equity - Group share amounted to EUR 918.7 million, an increase of EUR 49.8 million over the previous year.
A dividend of EUR 1.10 will be proposed at the Annual General Meeting to be held on 27 July 2006.
Outlook
Remy Cointreau continues its strategy of value creation by capitalising on its key brands and strong positions in principal world markets, essential growth drivers.
Once more, the Group forecasts double-digit growth in current operating profit for the 2005/06 financial year.
© 2006 Business Wire
