Current Operating Profit came in at €236.1 million, up 9.7% on a reported basis and 12.8% on an organic basis. Consequently, the current operating margin rose 2.4 percentage points to 23.4% over the full year (+2.3 percentage points on an organic basis).
This performance was mainly driven by remarkable growth in Current Operating Profit from Group Brands (+9.9% on an organic basis), together with lower holding company costs (as a result of a sharp reduction in travel expenses and the non-recurrence of costs associated with organisational changes in financial year 2019/2020).
Conversely, adverse currency effects reduced Current Operating Profit by €4.8 million over financial year 2020/2021. The EUR/USD exchange rate deteriorated over the period (averaging 1.17, compared with 1.11 in the year to end-March 2020), while the average collection rate (linked to the Group’s hedging policy) came out at 1.17, compared with 1.16 in the year to end-March 2020. Scope effects (acquisition of Maisons Brillet and J. de Telmont) weighed in at €1.7 million.
Operating profit came in at €235.9 million after taking into account a net operating expense of €0.2 million (in respect of acquisition costs over the period).
The Group posted a net financial expense of €14.6 million over the period (a €13.4 million improvement). While the cost of gross financial debt declined very slightly to €12.0 million (as a result of a reduction in the Group’s average debt), other finance costs fell €8.5 million as a result of changes in the terms of some eaux-de-vie supply contracts since the beginning of the financial year. The Group posted a net foreign exchange loss of €0.4 million, down significantly from the foreign exchange loss of €4.7 million posted in the year to end-March 2020.
The tax expense totalled €77.6 million, giving an effective tax rate of 35.1% (33.5% excluding non-recurring items), lower than the rate for the year ended March 2020 (36.3% on a reported basis and 33.9% excluding non-recurring items). The lower tax rate in some countries (notably France and the United States) was partially offset by an unfavourable geographical mix of results.
After taking into account the Group’s share of net income from associates, net profit attributable to the Group came in at €144.5 million, up 27.5% on a reported basis.
Excluding non-recurring items, net profit attributable to the Group came in at €148.2 million, up 19.4% on a reported basis, giving a net margin of 14.7%, up 2.6 percentage points. Earnings per share (excluding non-recurring items) came in at €2.96, up 18.7%.
Net debt stood at €314.3 million, down €136.6 million from the position at end-March 2020. This change was mainly driven by a significant improvement in Free Cash Flow, the disposal of Passoã SAS and by the fact that the dividend, in respect of financial year 2019/2020, was mainly paid in shares.
The net debt to EBITDA ratio thus came out at 1.33x, down significantly from end-March 2020 (1.86x).
The return on capital employed (RoCE) came out at 17.1% for the year ended 31 March 2021, up 0.6 percentage point year on year (+1.5 percentage points on an organic basis). Continued strategic purchases of eaux-de-vie adversely affecting capital employed were offset by a significant improvement in the profitability of Group Brands.
On the strength of the significant uplift in its results, the Group will propose at its Shareholders’ Meeting on 22 July that an ordinary dividend of €1.85 per share be paid in respect of financial year 2020/2021, a significant increase on both 2019/2020 (€1.00) and 2018/2019 (€1.65). The dividend will be paid entirely in cash.
