(Update: CFO comments on group outlook, stock market reaction)
PARIS (Agefi-Dow Jones)–Spirits group Rémy Cointreau on Tuesday raised its forecast for the positive effect of currencies for the financial year which will end at the end of March 2023 and its chief financial officer anticipates a new quarter of strong organic revenue growth for the period from July to September.
In a conference call with analysts, Rémy Cointreau’s chief financial officer, Luca Marotta, said he expects “robust double-digit” organic revenue growth in the second quarter, after the 27% increase. recorded over the first three months of the financial year.
For the whole of the 2022-2023 financial year, the group has confirmed that it is “perfectly positioned to take advantage of new consumer trends” and approach the year “with confidence”. As previously reported, it expects further “strong organic growth” in sales.
The consensus, of an organic increase of 11.2% over one year in Rémy Cointreau’s turnover for 2022-2023, is “relevant and fair”, estimated Luca Marotta.
Thanks to the group’s pricing power, “the improvement in the current operating margin will be driven by a solid resilience of its gross margin, despite an inflationary environment, and by strict control of its structural costs”, the band also said in a statement.
In this context, the group raised its forecasts regarding the favorable effect of currencies on its 2022-2023 results. It forecasts a positive exchange rate effect of 50 million to 60 million euros at the level of its current operating profit (ROC) and of 90 million to 100 million euros at the level of its turnover. Rémy Cointreau previously anticipated a positive currency effect of 30 million to 40 million euros on trading profit and of 70 million to 80 million euros in terms of turnover.
“The volatility of exchange rates remains high” and the group will continue to inform the market about these developments each quarter, however warned the leader.
Positive currency effect of 12.9% in the first quarter
In the first quarter of its 2022-2023 financial year, Rémy Cointreau achieved revenue of €409.9 million, up 39.9% year-on-year on a reported basis, due in particular to an “effect very positive for currencies (+12.9%), mainly linked to the evolution of the US dollar and the Chinese renminbi”.
At constant scope and exchange rates, sales increased by 27% over one year. “This performance reflects a strong increase in the price-mix effect (+14.5%) in line with the group’s value strategy, and a significant increase in volumes (+12.5%), integrating a phasing effect favorable for shipments to the United States”, explained Rémy Cointreau.
According to the consensus established by FactSet, analysts expected an average turnover of 374.1 million euros. Rémy Cointreau, for its part, was aiming for double-digit organic growth in its turnover in the first quarter.
In detail, the turnover of the Cognac division increased over one year by 46.4% in published data and by 31.5% on an organic basis, to 292.3 million euros. Revenues from the Liqueurs and Spirits division grew year-on-year by 28.7% on a reported basis and by 19.4% on an organic basis, to 109.7 million euros. The partner brands saw their turnover decline over one year by 3.1% in published data and by 3.8% in organic data, to 7.9 million euros, due to a high comparison base in Europe.
At 11:45 a.m., Rémy Cointreau shares lost 1.5% to 180.70 euros, while the SBF 120 index lost 0.1%.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: VLV
REMY COINTREAU FINANCIAL RELEASES:
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July 26, 2022 05:46 ET (09:46 GMT)