Implementing Technology to Achieve Group Strategy
by Luc Vlaminck, Group Treasurer, Rémy Cointreau
“The year ended 31 March 2010 was marked by a decisive event for the Group’s long-term future: on 1 April 2009, Rémy Cointreau rolled out its new worldwide commercial structure, thus taking control of 80% of its turnover and establishing a presence in new countries such as India and Brazil. Group brands now benefit from distribution that is consistent with their premium positioning and the direct application of their strategy by talented teams.In an ongoing difficult economic environment, the Group achieved a 12% increase in turnover and a 7.2% increase in operating profit of €140m. Rémy Cointreau thus demonstrated great resilience in the current crisis due to the success, from the first year, of its new distribution model, the dynamism of its brands and the high quality of its products.”
Dominique Hériard Dubreuil, Chairman of the Board.
Jean-Marie Laborde, Chief Executive Officer. Rémy Cointreau
In the period ended 30 September 2010 (mid year results), the Group generated a current operating profit of € 81m, a significant increase of 23.7% (up 8.4% organic). Current operating profit represented 18.9% of turnover, an increase of nearly one percentage point.
The Group successfully restructured its debt during the first half of the year, through the conclusion of a 3.67%, €140m private placement maturing in June 2015, the issue of €205m in bonds maturing in December 2016 bearing a 5.18% interest and early redemption of the € 200m bond issue.
Consequent to the restructuring, the Group’s key brands, such as Rémy Martin, Cointreau and Piper-Heidsieck now rely on a largely restructured and controlled distribution network. The network offers a sound basis for growth in high potential worldwide markets, particularly China and South East Asia. It also enables the Group’s differentiation based on refinement and discernment, and standardises price increase policies for its key brands.