Remy Cointreau SA · EURONEXT:RCO
Remy Cointreau SA — Investor Presentation (June 2023)
32 slides from Remy Cointreau SA's investor presentation, June 2023
Slide 1: General Investor Presentation
General Investor Presentation 1
Slide 2: Table of contents
Ta b l e o f co nte nt s 01 Rémy Cointreau at a glance 02 Strategic roadmap towards 2030 03 Financial performance 04 Contact information 2
Slide 3: Rémy Cointreau at a glance
Ré my C o i nt re a u at a g l a n c e • Rémy Cointreau is a French family-owned group whose origins date back to 1724. OUR VISION • It is the result of the merger in 1990 of the holding companies of the Hériard Dubreuil and Cointreau families, which held E. Rémy Martin & Cie SA and Cointreau & Cie
Slide 4: Rémy Cointreau in key figures
Ré my C o i nt re a u i n ke y f i g u re s Unique portfolio of Since 14 8-9% 1724 high-end brands of digital sales €1548.5m of sales 11 +16.2% 2021 c.€7.1bn Boutiques of market capitalisation 27.7% of sales employees of COP margin (June 2023) (5th June 2023) 4 FY 2022-23 unless otherwise stated
Slide 5: Our values
O u r va l u e s What links our Houses so closely together? The love for our terroirs and the mastery of time that have always been at the heart of our expertise. Each of our products is associated with a specific terroir. Men and women work this land to get the best out of it. The full value of thi
Slide 6: Table of contents
Ta b l e o f co nte nt s 01 Rémy Cointreau at a glance 02 Strategic roadmap towards 2030 03 Financial performance 04 Contact information 6
Slide 7: Covid-19 has accelerated long-lasting consumer trends
C o v i d - 1 9 h a s a c c e l e rate d l o n g - l a st i n g c o n s u m e r t re n d s Key trends in our sector post COVID-19 Main risks Up-trading trends: Drinking less but better >> Rise of Acceleration at-home of consumption e-commerce (mixology) >> Heightened environmental & social conscious
Slide 8: Our strategic priorities
O u r st rate g i c p r i o r i t i e s INCUBATOR BRANDS REGIONAL POWER GLOBAL PRIORITY BRANDS BRANDS PORTFOLIO BUILD IMPLEMENT ACHIEVE STRATEGIC INCREASE CLIENT-CENTRIC PORTFOLIO RESPONSIBLE PRIORITIES NewVALUE PERstrategy portfolio CASE MODEL MANAGEMENT GROWTH COMMERCIAL E-COMMERCE CAPABILITIES RE
Slide 9: Solid progress towards strategic priorities: Increase value per case
S o l i d p ro g re s s to wa rd s 2 0 3 0 st rate g i c p r i o r i t i e s I n c re a s e va l u e p e r ca s e Price-Mix: +2.6 pts in GM vs. LY Price-Mix: +3.1 pts in GM vs. 3Y Global weight of intermediate cognac: Approx. +15 pts vs. 2019-20 9
Slide 10: Solid progress: Build client-centric model
S o l i d p ro g re s s to wa rd s 2 0 3 0 st rate g i c p r i o r i t i e s B u i l d c l i e nt - c e nt r i c m o d e l Build Marketing intelligence 1 Know your clients desirable brands -------- Advertising ALL -------- Smartly drive PORTFOLIO Public relations 2 Leverage their purchasing journey
Slide 11: Solid progress: Implement portfolio management
S o l i d p ro g re s s to wa rd s 2 0 3 0 st rate g i c p r i o r i t i e s I m p l e m e nt p o r t fo l i o m a n a ge m e nt Liqueurs & Spirits +18.7 % vs. LY +54.1 % vs. 3Y +25% +10% +10% +15% vs. LY vs. LY vs. LY vs. LY Unlocked growth potential of Global Priority Brands 11 FY 22-23 Organic Sa
Slide 12: Achieve responsible growth: our climate strategy
S o l i d p ro g re s s to wa rd s 2 0 3 0 st rate g i c p r i o r i t i e s A c h i e ve re s p o n s i b l e g ro w t h : o u r c l i m ate st rate g y MITIGATE ADAPT REGENERATE Validated by SBTi Measured with Genesis Invest in R&D to identify climate resilient crops Deploy regenerative farming pr
Slide 13: Achieve responsible growth: Reduce GHG emissions
S o l i d p ro g re s s to wa rd s 2 0 3 0 st rate g i c p r i o r i t i e s A c h i e ve re s p o n s i b l e g ro w t h : Re d u c e G H G e m i s s i o n s Energy o 38% of renewable energy in 2022-23 Transport o Target: 100% of renewable energy in product sites and -42% 5% o -13% CO2 in 2022-23 1
Slide 14: Table of contents
Ta b l e o f co nte nt s 01 Rémy Cointreau at a glance 02 Strategic roadmap towards 2030 03 Financial performance 04 Contact information 14
Slide 15: FY 2022-23: we achieved a record year
2 0 2 2 - 2 3 : we a c h i e ve d a re co rd ye a r … SALES GM COP Reported EPS +10.1%* +14.2%* +16.2%* +37.5% 71.3% of sales 27.7% of sales €5.79 +2.6 pts* +1.4 pts* €1,548.5m €429.6m > x2 vs. 3Y Due to rounding, the sum of values presented in this presentation may differ from totals as reported. S
Slide 16: Crowning years of great progress
… c ro w n i n g 3 ye a rs o f g re at p ro g re s s 6.5m std cs +14.3% +43.6% € 1.5bn 2019-2023 2019-2023 Volume Sales COP Margin +5.0 pts % 2019-2023 71.3% +4.0 pts +3.7 pts 22% of Sales 2019-2023 2019-2023 Gross Margin A&P Change in organic terms 16
Slide 17: FY 2022/23 – A strong year
FY 2022/23– A strong year FY 22-23 ORGANIC* o Strong annual performance (+10.1%), representing +43.6% organic sales growth vs. FY 2019-20 SALES GROWTH o Sales up +10.2% in Q4 reflecting successful value strategy (Price-Mix: +7.6%); Volume up +2.6% +10.1% o -1.5 pts of calendar effect linked to CNY i
Slide 18: FY 2022/23 - Group Sales bridge
FY 2022/23 - Group Sales bridge Reported: +17.9% +7.8% +10.1% Price-Mix:+10.1% Volume: flat €1,548.5m €1,312.9m 18
Slide 19: Organic sales up +43.6% vs. FY 2019-20
FY 2022/23 - Organic sales up +43.6%* vs. FY 2019 -20 GROUP COGNAC LIQUORS & SPIRITS Sales CAGR: +12.8% Sales CAGR: +12.2% Sales CAGR: +15.5% +43.6%* +41.3%* +54.1%* €1548.5m €1100.0m €418.9m €1024.8m €735.5m €261.9m FY 19/20 FY 22/23 FY 19/20 FY 22/23 FY 19/20 FY 22/23 Volume: +14.3% (i.e. CAGR: +4
Slide 20: FY 2022/23 – Organic Sales growth by region
FY 2022/23 – Organic Sales growth by region AMERICAS: +2.5% YoY APAC: +22.7% YoY EMEA: +11.0% YoY +58.4% vs. FY 19-20 +49.1% vs. FY 19-20 Approx.+8.8% vs. FY 19-20 US China Western Europe Mid single-digit decline in Q4 (> pre-covid level), Very strong double-digit sales growth in Q4 Very strong doub
Slide 21: Cognac: +7.6% in FY
C o g n a c : + 7 . 6 % i n F Y ( o / w - 9 . 3 % i n Vo l u m e a n d + 1 6 . 9 % i n P r i c e - M i x ) North America: o FY 22-23: low single-digit decline in sales YoY (> +60% vs. FY 19-20) o Q4: very strong double-digit decline in sales YoY impacted by sharp normalization of consumption; persis
Slide 22: L&S: +18.7% in FY
L & S : + 1 8 . 7 % i n F Y ( o / w + 8 . 3 % i n Vo l u m e a n d + 1 0 . 5 % i n P r i c e - M i x ) North America: o Sales showed very strong double-digit growth YoY in FY and in Q4 (approx. +75% vs. FY 19-20), driven by Cointreau and The Botanist: continued rise in mixology (good momentum around
Slide 23: FY 2022-23 Group Current Operating Margin
F Y 2 0 2 2 - 2 3 G ro u p Current Operating Margin Reported COP/Sales : +2.3 pts -1.3 pts +0.1 pts +0.9 pts +2.6 pts Volume: flat Price/Mix: +2.6 pts 27.7% 25.5% Organic COP/Sales: +1.4 pts FY 21/22 Gross A&P Distribution/Other Currency FY 22/23 COP/Sales Margin COP/Sales 23
Slide 24: Current Operating Margin by division: Cognac
F Y 2 0 2 2 - 2 3 C u r re nt O p e rat i n g M a rg i n b y d i v i s i o n C o g n a c : + 1 4 . 7 % o rga n i c g ro w t h i n CO P Sales €1,100.0m Reported COP/Sales : +2.8 pts Organic change (%) +7.6% Volume / Price-Mix -9.3% / +16.9% +0.5 pts - 1.7 pts +0.0 pts Current Operating Profit €405.2m
Slide 25: Current Operating Margin by division: Liqueurs & Spirits
F Y 2 0 2 2 - 2 3 C u r re nt O p e rat i n g M a rg i n b y d i v i s i o n L i q u e u rs & S p i r i t s : + 1 8 . 1 % o rga n i c g ro w t h i n CO P Sales €418.9m Reported COP/Sales : +0.8 pts Organic change (%) +18.7% Volume / Price-Mix +8.3% / +10.5% Current Operating Profit €48.1m +0.9 pts -
Slide 26: FY 2022-23 Net debt/Cash flow
F Y 2 0 2 2 - 2 3 Net debt/Cash flow Ending March (in €m) FY 2022-23 FY 2021-22 Change Opening net financial debt (1 April) (353.3) (314.3) -39.0 Gross operating profit (EBITDA) 481.6 383.4 98.2 WCR for eaux-de-vie and spirits in ageing process (152.6) (67.7) -84.9 Other working capital items (42.0)
Slide 27: What we want to achieve
What we want to achieve Communicate to build desirable, Invest to launch desirable, Deliver long-term well-known brands aspirational brands shareholder value Share Dividend c. €110-120m buyback in 2023-24E c.€165m €3.00 Sept.-Dec. To be proposed Strategic WCR 2022 in 2022-23 c.€170m 51% of Payout ou
Slide 28: 2023-24 outlook: V-shaped trajectory
2 0 2 3 - 2 4 o u t l o o k : V - s h a p e d t ra j e c to r y o Continued strong normalization of consumption in the US (to remain significantly above 2019-20) o Strong organic growth in the rest of the world led by China, EMEA/Rest of Asia and Travel Retail (back to 2019-20 level) Rémy Cointreau
Slide 29: We are ahead of our Year 3 plan
We a re a h e a d o f o u r 1 0 Y p l a n Achieved O n t ra c k to d e l i ve r o u r 2 0 3 0 o b j e c t i ve s 2029-30 target Gross Margin* 2019-2030 71.6% 72.0% 69.2% 66.0% 66.8% 2019-20 Year 1 Year 2 Year 3 2023-24 Year 5 … Year 10 (Initial roadmap target) (guidance) COP Margin* 2019-2030 33.0%
Slide 30: Table of contents
Ta b l e o f co nte nt s 01 Rémy Cointreau at a glance 02 Strategic roadmap towards 2030 03 Financial performance 04 Contact information 30
Slide 31: Contact information
C o nta c t i n fo r m at i o n Célia d’Everlange (Head of Investor Relations) Luc Vlaminck (Group Treasury & Corporate Affairs Director) For questions, please send an e-mail to: • [email protected] • [email protected] 31
Slide 32: Disclaimer
Disclaimer This presentation does not constitute a prospectus or other offering document of securities, in whole or in part. This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to purchase any securities in any jurisdiction. This presentation