FY EPS 3.64 eur, down 37.1% (Il Sole 24 Ore Radiocor) - Paris, 06 Jun - French spirits maker Remy Cointreau said that in the full year ended in March the current operating profit fell a reported 29.1% and an organic 27.8% to 304.4 million euros but was 34.9% higher than the pre-Covid levels in 2019/20.

The decline reflects a 27.6% organic COP drop for Group Brands, in particular with Cognac down 33% and Liqueurs & Spirits up 18%. It also includes a 5.7 million euro adverse currency impact mainly linked to the Chinese renminbi and the US dollar.

The COP margin was 25.5% down 3 points organically and 2.3 points on a reported basis.

The group share of net profit stood at 184.8 million euros, down 37.1% as reported and up an organic 52.7% compared with 2019-20, making for a net margin at 15.5%, down 3.5 points as reported. Earnings per share were 3.64 euros, down -37.1% as reported compared to 2022-23. Excluding non-recurring items, EPS came to 3.84 euros.

The company confirmed that sales came to 1.194 billion euros, down a reported 22.9% and 19.2% lower organically but up 16.2% from 2019-20.

The group will propose an ordinary dividend of 2.0 euros per share payable in cash or shares.

The company said that 2024-25 will be a year of transition, with the finalization of destocking in the Americas, and 2025-26 will mark a resumption of the trajectory and targets set for 2029-30.

For this year, the company expects a gradual recovery in sales and profitability protected, while in 2025-26 it expects to return to high single-digit average annual sales growth, with a gradual improvement in COP margin on an organic basis.

"In a complex environment with limited visibility in its main markets, Re'my Cointreau anticipates a gradual recovery in sales over the course of 2024-25, with the first half affected by continued inventory adjustments in the Americas, given the still-negative trend in depletions, a high basis of comparison in the APAC region, and mixed consumption levels in the EMEA region," it said.

"Against this backdrop, Re'my Cointreau is determined to use tight cost controls and its value-driven strategy to protect its profitability, while continuing to make the investments needed for tomorrow's growth." It said it sees a negative currency impact on sales between 5-10 million this year and a favorable impact on COP of 3-7 million euros.

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(RADIOCOR) 06-06-24 08:16:50 (0136) 5 NNNN