CONSOLIDATED RESULTS
The Current Operating Profit (proforma) amounted to €263.6 million, representing reported growth of 11.3% and organic growth of 14.2%.
Current Operating Profit was adversely affected by unfavorable exchange rate effects of €6.8 million for the year. The improvement in average conversion and collection rates recorded in the second half of the year did not fully offset the negative exchange rate effects of the first half of the year.
Thus, the current operating margin (proforma) improved by +0.7 point to 21.7% for the year and increased by +1.3 points on an organic basis.
Operating profit (proforma) amounted to €265.2 million, after accounting for net operating income of €1.7 million, mainly related to disposals of non-strategic real estate assets.
Net financial expenses (proforma) amounted to €35.2 million for the period. This increase compared to last year is mainly due to two factors: a non-recurring charge of €5.2 million related to the early repayment of the vendor loan by the EPI Group (difference between the value of this loan on the balance sheet and the amount of the repayment) and a negative unrealized foreign exchange gain (valuation of the portfolio of hedging instruments on future flows) of €7.7 million. On the other hand, the cost of gross financial debt fell by €1.8 million, thanks to a lower average debt over the period and a lower average cost of debt.
The income tax charge (proforma) was €66.5 million, representing an effective tax rate of 28.9%. Excluding non-recurring items, the rate was 28.5%, down from March 2018 (29.7% excluding non-recurring items), due to the geographical evolution of results.
The share in profits of associates was a loss of €6.7 million, due to a €7.0 million non-recurring charge related to the exit of the Diversa joint venture in Germany (as part of the evolution of the Group’s distribution network).
Thus, net profit Group share (proforma) was €157.1 million, up 6.0% (+11.5% in organic terms).
Excluding non-recurring items, net profit Group share (proforma) was €167.8 million, up 10.9% (+16.3% in organic terms), and net earnings per share (proforma) reached €3.35, up 10.2%.
Net debt (proforma) totaled €313.0 million on the 31st of March 2019. Its limited increase of €30.2 million over the year is mainly due to the €103.6 million related to the share buyback program (executed between August and December 2018) and the change in working capital requirements, partially offset by the early repayment of the vendor loan by the EPI Group.
Therefore, the "net debt/EBITDA" ratio (proforma) improved significantly to 1.08 (1.19 post IFRS 15, 16 and 9) at the end of March 2019 from 1.48 at the end of March 2018, thanks to the strong increase in the Group’s EBITDA.
The proforma return on capital employed (ROCE) was 20.9% at 31 March 2019, down 1.0 point (-0.2 points in organic terms). The change in ROCE is explained by both the significant increase in strategic purchases of cognac eaux-de-vie and the decline in the profitability of Liqueurs & Spirits.
A dividend of 1.65 euros per share (stable compared to last year) will be proposed to shareholders at the Annual General Meeting on July 24th, 2019. Given the strong growth in annual results — a record level for the Group —, the Board of Directors has also decided to propose an exceptional dividend of 1.00 euros per share for 2018/19.
POST-CLOSING FINANCIAL EVENTS
On April 1st, 2019, the Group announced the effective sale of its distribution subsidiaries in the Czech Republic and Slovakia to Mast-Jägermeister SE.
On May 29th, 2019, the Group entered into exclusive negotiations with the Brillet family and its partners with the intention of acquiring the Maison de Cognac Brillet and part of its vineyard estate.
