2020/2021 AND MEDIUM-TERM OUTLOOK

In an uncertain public health, economic and geopolitical environment, the Rémy Cointreau Group remains confident of its ability to emerge stronger from the crisis. 

More favourable trends in the consumption of spirits in the United States over the past few weeks mean the Group can slightly upgrade its forecasts for the first quarter of 2020/2021: it now expects sales to decline by around 45% on an organic basis (previously 50-55%). Based on what looks set to be a moderate decline in the second quarter, the Group expects Current Operating Profit to decline by 45-50%, on an organic basis, in the first half of 2020/2021. However, the second half of 2020/2021 should see a strong recovery, buoyed by China and the United States.

In the medium term, Rémy Cointreau reiterates its aim of becoming the global leader in exceptional spirits, a segment in which the growth outlook remains attractive, particularly in a world of more responsible consumption.

To this end, Rémy Cointreau will be pursuing its value strategy and its work to build a business model that delivers profitable and responsible growth. The Group is therefore setting itself ambitious financial and non-financial targets: improved portfolio management should enable it to deliver a gross margin of 72% and a current operating margin of 33% by 2030. At the same time, the Group will be rolling out its "Sustainable Exception 2025" plan, which aims to achieve sustainable agriculture across all land on which its spirits depend, as well as reductions in its carbon emissions of 25% (across Scopes 1 and 2, in absolute terms) and 30% (across Scope 3, in relative terms) by 2025. This will be a first step towards achieving the Group’s ambition of "Net Zero carbon" by 2050.