Remy Cointreau SA · EURONEXT:RCO
Remy Cointreau SA — FY2008 Earnings Presentation
14 slides from Remy Cointreau SA's earnings presentation, Jul 30, 2008
Slide 1: Preliminary Results Year ended 31 March 2008
Preliminary Results Year ended 31 March 2008 30 July 2008
Slide 2: Key Figures
Key Figures Organic Published Turnover €817.8m + 9.7% + 4.1% - of which own brands €716.4m + 10.0% + 4.9% Current operating profit €159.6m + 14.1% + 3.8% Operating margin 19.5% 20.4% Net profit (Group share) €98.4m Net financial debt €440.9m - 21.6% Fourth year of consecutive organic growth with a d
Slide 3: Current Operating Profit
Current Operating Profit €m Currency Volume/ impact Mix Price A&P Others + 22.5 + 20.3 (11.0) (10.1) (15.9) €(16.0)m with Maxxium 153.8 Organic growth + 14.1% 159.6 Fourth year of double-digit organic growth March 07 March 08 Operating margin 19.6% 19.5% (org. 20.4%) Preliminary Results at 31 March
Slide 4: Analysis of Operating Profit
Analysis of Operating Profit Performance (€m) March 08 March 07 Published Organic Turnover 817.8 785.9 + 4.1% + 9.7% Gross profit 442.1 417.3 + 5.9% + 12.1% Sales & marketing expenses (210.6) (192.5) + 9.4% - Administrative expenses (83.0) (81.1) + 2.3% - Other income & expenses 11.1 10.1 + 9.9% - C
Slide 5: Net Profit from Continuing Operations
Net Profit from Continuing Operations (€m) March 08 March 07 Operating profit 159.0 (89.6) Financial charges (45.8) (37.3) Profit/(loss) before tax 113.2 (126.9) Taxation (28.9) 50.1 Share in profits of associated undertakings 9.5 10.2 (Maxxium – Dynasty) Net profit/(loss) from continuing operations
Slide 6: Financial Charges
Financial Charges (€m) March 08 March 07 Net borrowing cost (40.5) (37.2) - Financial debt (29.4) (36.0) - Amortisation/refinancing charges (1.1) (1.8) Early redemption premium and accelerated amortisation of the 6.5% bond issue costs (8.0) - Waiver on the 5.2% bond (2.5) - - IAS 32/39 0.5 0.6 Other
Slide 7: Exit from Maxxium: accounting aspects
Exit from Maxxium: accounting aspects Provision of €241 million before tax (exit indemnity) at 31 March 2007 2007/08 discount provision charge of €9.2 million included in finance costs Cash outflow at the end of March 2009 2008/09 discount provision charge of €9.5 million Investment in Maxxium equit
Slide 8: Exit from Maxxium: operational aspects
Exit from Maxxium: operational aspects On 24 July 2008, following the agreement of the European Commission, the Pernod Ricard Group confirmed that it had closed the acquisition of V&S The four partners continued and accelerated their negotiations (indemnity, value of Maxxium) Rémy Cointreau has toda
Slide 9: Impact of €/$ Hedging
Impact of €/$ Hedging 1,41 1,30 1,26 1,37 Average €/$ US 1,23 Hedged rate (optional) 1,28 1,20 1,22 2004/05 2005/06 2006/07 2007/08 Forex impact on ROC (€m) Impact ROC 2008/09 (30.9) (4.6) (13.7) (15.8) €1 = USD 1.60 €(17)m (30.3) (7.4) (13.7) (13.8) 1.46 rate “at worst” option - Transaction effect
Slide 10: Net Profit (Group Share)
Net Profit (Group Share) (€m) March 08 March 07 Net profit/(loss) from continuing operations 93.8 (66.6) Net profit from discontinued operations or in the process of sale 4.6 45.2 Net profit/(loss) 98.4 (21.4) Minority interests - (1.6) Group share 98.4 (23.0) Preliminary Results at 31 March 2008 10
Slide 11: Profit from Discontinued Operations
Profit from Discontinued Operations (€m) March 08 March 07 Bols & Italian liqueurs 4.5 33.6 Cognac de Luze - 5.8 Hungarian operations - 7.1 Armagnac (in the process of sale) 0.1 (1.3) Profit from discontinued operations (or in the process of sale) 4.6 45.2 Preliminary Results at 31 March 2008 11
Slide 12: Start of 2008/09 Financial Year
Start of 2008/09 Financial Year First Quarter Turnover: +3.4% (Own brands’ organic growth) 3 months 3 months % Change (€m) 30.06.08 30.06.07 Published Organic* Cognac 66.5 71.2 (6.6)% + 2.3 Liqueurs & Spirits 44.5 45.8 (2.8)% + 0.6 Champagne 22.5 20.4 +10.3% +13.6 Sub-total 133.5 137.4 (2.8)% + 3.4
Slide 13: Balance Sheet - Assets
Balance Sheet - Assets (€m) March 08 March 07 Intangible assets 807.0 800.0 Investments in associates 120.3 127.2 Other investments 54.1 97.5 Deferred tax assets 14.0 13.0 Non-current assets 995.4 1,037.7 Inventories 861.6 841.7 Trade accounts receivable 238.3 245.6 Income tax recoverable 1.5 30.8 D
Slide 14: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities (€m) March 08 March 07 Shareholders’ equity 911.5 852.5 Non-current liabilities 512.9 817.7 Current liabilities 738.3 534.7 Total equity and liabilities 2,162.7 2,204.9 Preliminary Results at 31 March 2008 14