Cointreau RA GB GRAV21/07/0614:43Page1 LIBERAL INTERPRETATION Standing Offlavoursfortheconnoisseurs’Enjoyment
Total Page：16
File Type：pdf, Size：1020Kb
Cointreau_RAPPORT_GB_Q 6/07/06 19:25 Page 1 www.remy-cointreau.com ANNUAL REPORT 2005 | 2006 Cointreau_RAPPORT_GB_Q 6/07/06 19:25 Page 2 2005 | 2006 A global workforce of 1,350 Turnover: €798.3 million 4.5% organic growth €141.8 million Current operating profit 14.9% organic growth Operating margin 17.8% CONTENTS 1 Corporate Profile 2 Message from the Chairman of the Board of Directors and the Chief Executive Officer 4 Key figures 6 Sector Review – Cognac, Liqueurs & Spirits and Champagne – 16 Distribution 18 Corporate and Environmental Responsibility 30 Corporate Governance 31 Share Performance and Shareholdings 32 Financial Information Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 1 LIBERAL INTERPRETATION OF CONTEMPORARY EXCELLENCE Rémy Cointreau’s brands are well-known and benefit from a strong reputation among contemporary connoisseurs on a quest for excellence. The success of Group brands such as Rémy Martin, Cointreau, Piper-Heidsieck, Metaxa and Mount Gay Rum 1 is due to a unique blend of prestige and pleasurable 05-06 discovery, the demand for perfection and contempo- rary aspirations. RÉMY COINTREAU Always at the forefront of innovation, Rémy Cointreau freely combines, century old expertise with an under- standing of flavours for the connoisseurs’ enjoyment. www.remy-cointreau.com Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 2 “The assets at our disposal to ensure strong and sustainable growth are our brands and Rémy Cointreau’s talented, MESSAGE FROM knowledgeable and committed DOMINIQUE HÉRIARD DUBREUIL, personnel.” 2 Chairman of the Board of Directors Dominique Hériard Dubreuil 05-06 & JEAN-MARIE LABORDE Chief Executive Officer RÉMY COINTREAU QUALITY AND ADDED VALUE: RÉMY COINTREAU’S STRATEGY PROVES EFFECTIVE The 2005/06 year has enabled us to commercial and marketing resources, measure our progress. Following the while controlling industrial and decision to focus our efforts on our logistics costs. The reorganisation of most dynamic and profitable brands our production units in France, in and their markets, Rémy Cointreau’s particular Champagne, and our dis- teams worldwide took steps to tribution channels in Europe and develop these brands, with the result Russia, contributed to a significant that they are now clearly positioned improvement in the competitiveness in the top-of-the-range segment of of our brands and an increased the market. focus on commercial, advertising and promotional resources for the The work we undertook resulted Group’s flagship brands. During in a further reduction in operating the year an additional €14 million costs, better foreign exchange was invested in promoting our key hedging and the optimisation of brands. Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 3 We are pleased with the sharp This goal is shared by all our Piper-Heidsieck is the No. 3 decline in the Group’s net debt. The employees, whose commitment is champagne brand worldwide. It is a disposal of non-strategic operations fundamental to the Group’s success. lively, contemporary, delicate and and brands will result in debt of less They guarantee that the demands sparkling brand, with an emphasis on than €500 million. Consequently, for quality, innovation and creativity originality. Following the completion Rémy Cointreau will have significant are met. Thus, the development of of the restructuring plan launched room for manoeuvre to invest further expertise beyond compliance with the last year, the brand has achieved in developing its brands. Global Compact Charter is a priority better profitability levels, even if to ensure that Rémy Cointreau’s these are not yet totally satisfactory. The consolidation of our brands in corporate responsibility policy is a the top-of-the-range segment is means of creating value over the The Group’s refocus on its strengths now virtually complete in a highly long term. also provides a formidable means of competitive market. More than ever, meeting international competition the Group has striven to enhance its Our objective remains sustainable with the USA, Asia and Russia our image and establish its identity and profitable growth, primarily priority markets. The US market through its roots in order to provide through increasing our efforts remains, by far, the largest market for consumers with unrivalled levels of with regard to our top-of-the-range top-of-the-range products. Our expertise and excellence. brands. Rémy Martin is already brands are very well-positioned in consolidating its range of superior this market due to the Rémy quality products and deliberately Cointreau USA network. In addition, moving towards the premium the consolidation of the Maxxium segment, with increased profitability distribution organisation in Europe and major growth objectives. and Asia has paved the way for us to 3 enhance exposure of our brands where there is growth potential. In Asia, and China in particular, the 05-06 reorganisation of our distribution “The growing demand for very high quality channels now enables us to be more responsive and in a better position to products is confirmed, thereby validating anticipate developments in this very active market. Our recent distribu- RÉMY COINTREAU our strategy of focusing on our premium brands.” tion agreements in Eastern Europe and Russia will also enable us to Jean-Marie Laborde accelerate sales growth and consoli- date our positions in the long term. Rémy Cointreau will continue to achieve double-digit growth in operating profit. This is essential in Each year Rémy Martin reconfirms order to develop our commercial its leadership in duty-free markets. positions in the fastest-growing markets. It will also enable us to Cointreau has positioned itself as a remain open to profitable opportuni- genuinely contemporary brand. It has ties and alliances, benefiting our benefited from continued growth key brands, in order to consolidate in the US and has accelerated its our medium and long term prof- development in Asia, in particular itability. The guarantee of the Japan. The rejuvenation of this brand long term future of our brands is has increased its visibility through a Rémy Cointreau’s highest priority. more feminine and contemporary image in line with new consumption trends. Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 4 KEY FIGURES AT 31 MARCH 2006 A YEAR OF VALUE STRATEGY Currency Business impact volume + 33.8 798.3* 748.3* + 16.2 4.5% organic growth March 2005 March 2006 IFRS TURNOVER (€ millions) 16.8% 15.6% Part ner brands Asia and others 4 05-06 15.3% 40.4% 46.9% Champagne Cognac Americas 37.5% Europe RÉMY COINTREAU 27.5% Liqu eurs & Spirits TURNOVER BY DIVISION TURNOVER BY GEOGRAPHIC REGION Currency impact Volume Price/Mix A&P Other + 11.1 + 0.7 + 2.0 141.8 127.4 + 5.1 (4.5) 14.9% organic growth March 2005 March 2006 IFRS OPERATING PROFIT (€ millions) * Excluding Polish vodkas (disposed of in August 2005), Dutch liqueurs and spirits and Italian liqueurs (disposed of in April 2006) and Cognac de Luze, held for disposal. Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 5 8.7% 10.7% 28.0% 15.2% 35.9% 53.8% 74.1% 55.4% 18.2% COGNAC LIQUEURS & SPIRITS CHAMPAGNE Americas Asia & others Europe BREAKDOWN OF TURNOVER (by activity and geographic aera) 77.8 862.8 771.5* + 56% 49.8 (11%) 5 05-06 2005 2006 2005 2006* RÉMY COINTREAU * Before the disposal of Bols Liqueurs & Spirits. MOVEMENT IN FINANCIAL DEBT NET PROFIT GROUP SHARE (€ millions) (€ millions) Established commercially 4 production sites in 150 COUNTRIES 2 major distribution A global workforce of networks MAXXIUM (Europe-Asia) 1,350 42% of turnover in value RÉMY COINTREAU USA 41% of turnover in value Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 6 20% ORGANIC GROWTH CURRENT OPERATING PROFIT: €76.3 MILLION TURNOVER: €322.6 MILLION Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 7 Rémy Martin consolidates its value strategy in the top-of- the-range segment of the cognac market. RÉMY MARTIN FINE CHAMPAGNE COGNAC, A SYMBOLIC AND UNIQUE BRAND 7 VALUE STRATEGY Rémy Martin has consolidated its The value strategy implemented by 05-06 value strategy in the top-of-the-range Rémy Martin focuses on the three segment of the cognac market through most representative qualities of the the increased differentiation of its brand: V.S.O.P., X.O. Excellence Fine Champagne. In order to stimulate more than ever, an unrivalled bench- and Louis XIII. growth, the brand helps consumers to mark product in its principal markets. RÉMY COINTREAU discover new consumption modes The Alliance Fine Champagne (a V.S.O.P. Fine Champagne is confirmed without affecting the unique image of co-operative which brings together as a true icon in the superior quality its cognacs. Rémy Cointreau’s vine growing segment. It expresses the elegant and partners) created last year, helps the contemporary qualities of the brand Generations of cellar masters succeed brand to ensure the long term future worldwide. It is often reinvented each other and pass on their unique and quality of its Fine Champagne and can be served ice-cold as an expertise in the making and aging of eaux-de-vie. It only comes from the aperitif, in a cocktail or following a eaux-de-vie: their art and profession- best two vineyards in Cognac, Grande meal. Major communication campaigns alism perpetuate an age-old tradition Champagne and Petite Champagne. and innovative marketing have enabled of scarcity and quality. This tradi- Rémy Martin accounts for 70% the brand to appeal to new consumers, tion makes Rémy Martin a symbolic of cognac shipments in the Fine particularly in the US and Asia. and unique brand, which is now, Champagne appellation. Cointreau_RA_GB_GRAV 21/07/06 14:43 Page 8 GLOBAL REACH In China, the US and the UK, countries with high potential, Rémy Martin experienced another year of growth.