After very good results for the 2021-2022 fiscal year, the Rémy Cointreau spirits group announces that its board of directors will undergo several changes.
The Rémy Cointreau Group has decided to propose to the shareholders’ meeting of July 21, the appointment of Alain Li as an independent director, who would replace Marc Hériard Dubreuil, for a three-year term.
The Board also wishes to submit to shareholders the renewal of the directorships of Hélène Dubrule, Olivier Jolivet, Marie-Amélie de Leusse and ORPAR for a period of three years.
In addition, as part of the succession plan, the Board decided to appoint Marie-Amélie de Leusse as Chairman of the Board of Directors, Caroline Bois as Vice-Chairwoman and Jérôme Bosc as non-voting director.
Rémy Cointreau has posted record profits for its 2021-2022 fiscal year and is well positioned for another year of exceptional growth. Revenues reached €1.3 billion, up 30% year-on-year, while profit from recurring operations jumped 41.6% to €334.4 million and net income, group share, to €212.5 million, representing an increase of 47%.
The confinement and closure of restaurants and bars where alcohol is usually consumed was favourable for the group, as it boosted consumption at home and increased the appeal of high-end products. And even inflation is having a positive impact on spirits sales: “Retailers are more accepting of price increases,” says General Manager Eric Vallat. “We have converted customers. (…) In fact, we have noticed that the average price of a drink in a bar or restaurant has increased.” The group hopes to largely cover the inflation in production costs by increasing its prices and by playing the high-end card even more.
Playing the high-end card
To support its luxury strategy, the group intends to significantly reduce the weight of distribution in its costs and develop direct relations with its customers. The group has opened seven boutiques, including five in China. “Even if the stores are closed in China because of Covid, they have already enabled us to build up an address book and develop personalized services and home delivery,” adds Eric Vallat.
However, the weakness of Chinese demand is offset by the dynamism in Europe and the United States, which represents 52% of Rémy Cointreau’s sales. “In the United States and elsewhere, new ways of consuming have taken hold during the health crisis and are continuing. Consumers are drinking less but better, which is good for us. The cocktail trend is just as positive. Our spirits are present in more than 600 cocktails, including the margarita, the most prepared in the United States,” observes Eric Vallat.
Rémy Cointreau expects a gross margin of 72% and an operating margin of 33% for the next fiscal year. In the first quarter of the current fiscal year, growth was in double digits despite the very strict confines in China.
Featured photo : © Rémy Cointreau