FINANCIAL TARGETS
2018/2019 was a record year for all the Group’s financial indicators.
This is due to the strong acceleration in organic sales growth over the past three years, combined with a sharp increase in profitability as a result of the Group’s strategy to move upmarket. Current operating margin stood at 21.7% in 2018/2019, a cumulative organic increase of 5.0 percentage points (at constant currency and scope) since the 2014/2015 financial year (new senior management team). Over the last two years, cumulative organic growth in the current operating margin was 2.6 points, thereby hitting the 2019/2020 target (+2.4-3.0 points over three years) one year early.
Change in the Group’s current operating margin.
Organic gain :
+5.0 pts between 2015 and 2019
+2.6 pts in 2 years
O2020 target (+2.4-3.0 pts over 3 years) achieved 1 year earlier
COP MARGIN : 16.2%
ORGANIC GAIN 2015-2016 : 0.9%
ORGANIC GAIN 2016-2017 : 1.5%
ORGANIC GAIN 2017-2018 : 1.3%
ORGANIC GAIN 2017-2018 : 1.3%
PERTES/GAINS DE CHANGE : 0.5%
COP MARGIN 2019 proforma : 21.7%
COP MARGIN 2019 POST IFRS : 23.5%
NEW MEDIUM-TERM PROSPECTS
In an uncertain economic and geopolitical context, the Rémy Cointreau Group reiterates its ambition to become the world leader in exceptional spirits. In the medium term, this will result in 60 to 65% of its turnover being generated by exceptional spirits (retail sales price over USD50).
In addition, after a strong increase in profitability in recent years, the Group remains ambitious regarding the potential of its Current Operating Margin in the medium term, as it will continue to benefit from its value strategy, while continuing to invest significantly behind its brands and distribution network. Rémy Cointreau’s objective is to build an increasingly sustainable, resilient and profitable business model.
In the short term, Rémy Cointreau anticipates that 2019/20 will unfold within the framework of the Group’s medium-term objectives. It will also include the termination of distribution contracts for partner brands (in the Czech Republic, Slovakia and the United States), which are estimated to have an impact of €56 million on sales and €5 million on Current Operating Profits.
NON-FINANCIAL TARGETS TO 2020
INDICATORS
| INDICATORS | SCOPE | VALUES 2016/2017 | VALUES 2017/2018 | VALUES 2018/2019 | TARGETS 2019/2020 |
|---|---|---|---|---|---|
 Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX |
Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX SCOPE Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX SCOPE World |
Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX VALUES 2016/2017 Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX VALUES 2016/2017 83% |
Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX VALUES 2017/2018 Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX VALUES 2017/2018 89% |
Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX VALUES 2018/2019 Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX VALUES 2018/2019 92% |
Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX TARGETS 2019/2020 Decent work and economic growth/Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Responsible purchasing: percentage of suppliers having joined SEDEX TARGETS 2019/2020 100% |
 Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO2 emissions. |
Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. SCOPE Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. SCOPE France |
Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. VALUES 2016/2017 Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. VALUES 2016/2017 0 MWh |
Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. VALUES 2017/2018 Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. VALUES 2017/2018 -423 MWh |
Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. VALUES 2018/2019 Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. VALUES 2018/2019 -441 MWh |
Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. TARGETS 2019/2020 Take action to combat climate change and its impactsPotential reduction of direct and indirect energy consumption in order to reduce CO 2emissions. TARGETS 2019/2020 -900 MWh |
 Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE
1 or the Sustainable Viticulture standards) |
Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) SCOPE Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) SCOPE France |
Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) VALUES 2016/2017 Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) VALUES 2016/2017 37% |
Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) VALUES 2017/2018 Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) VALUES 2017/2018 64% |
Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) VALUES 2018/2019 Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) VALUES 2018/2019 94% |
Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) TARGETS 2019/2020 Sustainable land management/Protect, restore and promote sustainable use of land ecosystems/Sustainably manage forests/Preserve biodiversity Sustainable viticulture: AFC cooperative surface areas committed to an environmental approach(AHVE 1 or the Sustainable Viticulture standards) TARGETS 2019/2020 100% |