THE HOUSE OF RÉMY MARTIN

Sales for the House of Rémy Martin saw another year of strong growth (+11.9% ^* ), driven by the Asia Pacific region, but also by the United States, the United Kingdom, the Middle East, Russia, and Travel Retail. Within our brands, the strong performance of intermediate qualities — particularly CLUB in Asia-Pacific —, the sustained growth of Rémy Martin XO across continents and the continued international development of LOUIS XIII once again resulted in remarkable price/mix effects over the year (+6%), while volume growth remained high (+6%).

Current Operating Profit (proforma) reached €235.6 million, with organic growth of 17.9% and a current operating margin of 27.7%, representing an organic increase of 1.4 points (+0.8 point as reported). The margin evolution is explained by a significant increase in gross margin (due to our value strategy and notable price increases over the period), which more than offset a sustained increase in investments in communications and the continued strengthening of distribution structures.

LIQUEURS & SPIRITS

The organic sales growth of the Liqueurs & Spirits division (+4.0%*) was driven by strong performance of the Maison Cointreau and St-Rémy brandy, while The Botanist gin and Whisky continued their remarkable development.

Current Operating Profit (proforma) amounted to €38.8 million, down 6.0% organic. This trend is explained by the significant increase in communication investments, begun last year, focused on strengthening awareness and accelerating the internationalization of the division’s brands. The current operating margin was 14.0% at the end of March 2019, down 1.5 points organically (-2.0 points reported).

PARTNER BRANDS

Organic sales decreased by 12.7% over the period, due to the termination of new partner brand distribution contracts. The Current Operating Profit (proforma) was €4.9 million, down 7.2% organically...