INTEGRATED ANNUAL REPORT 2020/2021

Cognac sales were up 3.7%* in financial year 2020/2021. This overall growth was driven by a 9.1% increase in volumes combined with adverse price/mix effects of -5.4% as a result of very strong growth in VSOP and intermediaries (CLUB and 1738 Accord Royal). After a notable decline in the first half of the year, sales quickened significantly in the second half (up 27.0%*), buoyed by the United States and mainland China. Although the decline slowed in the second half of the year, the Duty Free segment and the on-trade channel continued to weigh on performance in Southeast Asia, Africa and Latin America.

Current Operating Profit totalled €221.0 million, up 10.7% on a reported basis (and up 11.3% on an organic basis). The current operating margin rose 2.9 percentage points to 30.1%, buoyed by a sharp decline in overhead costs and favourable currency effects. It also takes account of increased communication investment, particularly in the key markets of the United States and China.

Despite a sharp upturn in business in the second half of the year (+7.2%*), sales of Liqueurs & Spirits declined slightly over the full year (-3.2%*). The House of Cointreau and the Whisky business both posted very strong performance, while the rest of the portfolio was hampered by weakness in the EMEA region (due to the closure of the on-trade channel) and the Duty Free segment. 

Current Operating Profit came in at €33.0 million, down 11.9% on a reported basis (+2.5% on an organic basis). The current operating margin declined 1.0 percentage point to 13.3% due to a combination of lower volumes and continued strategic investment, notably to support strong performance by the Cointreau brand and pave the way for future growth.

Partner Brands sales declined slightly in the full year (-1.5%*), with Current Operating Profit coming in at negative €0.8 million, down from negative €1.7 million in the year to end-March 2020.

* Organic growth is calculated assuming constant exchange rates and consolidation scope.