Sales at the Cognac division grew a remarkable +26.3% on an organic basis in 2021/2022 (+30.7% compared to 2019/2020), with volume growth contributing +12.5% and price/mix effects +13.8% thanks to the growing contribution from high-end and mid-range products (Club in China and 1738 in the United States) and price increases. All regions contributed to this excellent performance.
Current Operating Profit rose +43.8% on an organic basis to €323.0 million (+58.9% compared to 2019/2020). Consequently, the margin rose +4.2 pp on an organic basis to 34.1% (+6.1 pp compared to 2019/2020). The significant increase in marketing and communications investment was largely absorbed by very strong growth in the division’s gross margin (evenly split between volume and price/mix effects) and its high operating leverage.
Sales at the Liqueurs & Spirits division grew +31.7% in 2021/2022 (+27.5% compared to 2019/2020), with volume growth contributing +24.6% and price/mix effects +7.1%. The division benefited in particular from excellent performance by Cointreau and Bruichladdich whiskies and the ramp-up in sales of The Botanist.
Current Operating Profit came in at €35.5 million, up +10.6% on an organic basis (+16.5% compared to 2019/2020). The current operating margin came in at 10.6% (down -2.1 pp on an organic basis). On the strength of its progress against its strategic priorities, the Group opted to reinvest much of its gross margin gains (up +1.5 pp vs. 2020/2021 and +3.5 pp vs. 2019/2020) in marketing and communications to boost brand awareness and desirability (notably for Cointreau, The Botanist and Bruichladdich whiskies) and pave the way for future growth. At the same time, the Group maintained strict control over its overhead costs.
Partner Brand sales grew +15.2% on an organic basis in 2021/2022 (+13.5% compared to 2019/2020), supported by favourable trends in Europe, their main market.
In terms of Current Operating Profit, Partner Brands broke even in 2021/2022 after posting a -€0.8 million loss in 2020/2021.
