In This Article:
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Group Sales: EUR 534 million, representing a 16% organic decline.
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Current Operating Profit (COP): EUR 147 million, down 17.6% organically.
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COP Margin: 27.6%, up 1 point as reported, down 0.5 points organically.
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Gross Margin: 72.5%, down 1.4 points, but up 3 points versus H1 '19/'20.
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A&P Expenses: Reduced by 1/3, accounting for 18.4% of sales.
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Operating Expenses (OpEx): Decreased by 6.8%.
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Net Profit Group Share: EUR 92 million, down 18.6% reported.
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Net Margin: 17.2%, down 0.6 points.
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Earnings Per Share (EPS): EUR 1.8, down 19.4%.
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Free Cash Flow: Negative at minus EUR 7.6 million.
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Net Financial Debt: EUR 644.3 million, up EUR 53.8 million year-over-year.
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Net Debt to Equity Ratio: Increased from 33% to 34%.
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Tax Rate: Increased from 26.6% to 27.5% reported.
Release Date: November 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Remy Cointreau (REMYF) maintained a strong gross margin of 72.5%, which is up 3 points compared to H1 '19/'20, despite facing cost production inflation.
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The company has implemented rigorous cost management strategies, reducing A&P expenses by one-third and OpEx by 6.8%, demonstrating operational resilience.
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Remy Cointreau (REMYF) has shown resilience in its Liqueurs & Spirits division, with a margin increase to 16.5% and a favorable currency effect contributing positively.
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The company is leveraging its strong position in e-commerce, with 25% of sales in China coming from this channel, and achieving double-digit sales growth during the Double 11 festival.
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Remy Cointreau (REMYF) is focusing on strategic investments and innovation, such as the launch of new products like Remy V, to appeal to younger demographics and expand its market reach.
Negative Points
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Group sales declined by almost 16% organically, reflecting broader macroeconomic challenges and impacting overall financial performance.
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Current operating profit decreased by 17.6% on an organic basis, with a slight decline in gross margin due to cost inflation and an unfavorable product mix.
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The U.S. market remains challenging, with aggressive pricing from competitors and a slower-than-expected recovery in Cognac sales.
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The Chinese market is experiencing volatility, with a lack of visibility and heightened uncertainty affecting sales and market confidence.
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Remy Cointreau (REMYF) anticipates a challenging second half, with a significant decline in Q3 sales expected due to high comparatives and ongoing market pressures.