Q2 ORGANIC*

SALES GROWTH

-10.8% vs. Q2 22-23

+25.6 % vs Q2 19-20

H1 23-24 ORGANIC

SALES GROWTH

BY REGION

H1 23-24

VALUE DEPLETIONS

BY REGION

ADJUSTED

FY GUIDANCE

  1. H1 Sales down -22.2%YoY (+20.9% vs H1 2019-20), strongly impacted by Americas (-49.9% YoY) while RoW generated strong growth (+13.8% YoY)
  1. Continued destocking (in absolute value) in North America and sharp consumption's normalization alongside tougher market conditions (fiercely promotional environment and rise in financial interest)
  1. Solid sell-in in China for MAF despite an environment showing a slower-than-expectedpost-Covid recovery
  1. H1 Price-Mix: -3.3% impacted by Americas where Cognac strongly underperformed Liqueurs & Spirits; volume: -18.9%
  1. AMERICAS: -49.9% in H1 including a sequential improvement in Q2 and mostly impacted by Cognac's division; -3.2%vs. H1 19-20
  1. APAC: +16.6% in H1, led by China, Southeast Asia and continued GTR recovery; +55.8% vs. H1 19-20
  1. EMEA: +8.9%, showing a good resilience despite more adverse market conditions; +19.4% vs H1 19-20
  1. US: high-single-digit decline YoY in H1 (low-single-digit decline excl. VSOP); approx. +30% vs. H1 19-20 (approx. +70% excl. VSOP)
  1. China: mid-single-digit decline YoY in H1 compared to high comps.; approx. +45% vs. H1 19-20 (vs. only +20% in the previous quarter)
  1. EMEA: up mid-teens YoY in H1, led by Africa-Middle East, the UK and Eastern Europe; approx. +30% vs. H1 19-20
  1. Group: Sell-in up +20.9% vs 4Y compared to approx. +35% in value depletions
  1. Sales: decline between -15% and -20% on an organic basis (vs stable previously)
  1. COP margin: contained organic decrease (vs stable previously) thanks to deployment of a major cost-cutting plan

(*) All references to organic growth in this presentation correspond to sales growth at constant exchange rates and scope

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Up HSD% in Q2

Solid level of sell-in during MAF despite slower-than-

expected recovery post-Covid

Outperformance of Direct channels and Off-trade Weak performance in On-trade (< 10% of sales)

Up versus end of Q1

Expect to be back to healthy levels post CNY

MSD% decline YoY

Approx. +45% vs. H1 19-20

Up mid-teens in Q2,

boosted by strong rebound in Japan

Very strong decline in Q2 but improving vs. Q1 Continued strong destocking (in absolute value) on Cognac alongside tougher market conditions Sharp rebound in L&S, as expected

Q2 slightly above pre-covid level

Around 5 months impacted by deteriorated depletions

HSD% decline YoY (down LSD% excl. VSOP) approx. +30% vs. H1 19-20 (+70% excl. VSOP)

Very strong decline in Q2,

facing same headwinds as in the US

Down low double-digit in Q2

Up high-Single digit in Q2, led by

Spain, Italy and Greece

Up high-Single digit in Q2 still helped by positive phasing effects linked to duties increase in August

Very strong double-digit growth in Africa Middle-East

Softer trends in Benelux and France

Sound/slight increase

Up mid-teens YoY in H1

approx. +30% vs. H1 19-20

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  1. China: high-single digit rise in sales in Q2 (> +100% vs. Q2 19-20) on top of high comps.; market recovery post covid is slower than expected due to soft consumer confidence. On-trade channel was weaker while off-trade and direct sales showed a better resilience. Overall, value depletions were down MSD% in H1 resulting in higher level of inventory compared to end of Q1. Outstanding performance in Taiwan in Q2. Continued weak sell-in in Macau but strong acceleration in value depletions. Hong Kong generated a very strong quarter supported by very dynamic value depletions.
  1. Rest of Asia: mid-teens rise YoY in Q2, led by QSS+ in Malaysia, Philippines and Australia

North America:

  1. Meaningful decline YoY in Q2 (approx. -20% vs. Q2 19-20), impacted by destocking, consumption's normalization and high comps; market is also showing tougher market conditions: financial interest rise has reduced significantly distributors' financing capacity and persistent market promotions added pressure on RM volume which maintained its prices
  1. Q2 US value depletions: down -32.8% YoY (-10.6% vs. Q2 19-20), showing a sequential volume's deterioration versus Q1

Latin America: MSD% rise in sales in Q2 driven by VSOP

* Company data

US

Price-Mix:

Approx. +7 pts YoY +26 pts vs. 2019-20

(12m basis - ended Sept. 2023)

  1. Sales up low to mid-single digit in Q2 led by Africa & ME and Western Europe
  1. Benelux/France was softer in Q2 in a more promotional market
  1. Travel retail Europe and Eastern Europe impacted by geopolitics context

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North America:

  1. Very strong DD% growth YoY in Q2 (approx. +65% vs. Q2 19-20), showing a strong sequential acceleration from Q1
  1. Strong momentum (both in sell-in and value depletions) on Cointreau, Bruichladdich and The Botanist
  1. Cointreau's Q2 US value depletions were up +9.2% YoY (+75.1% vs. Q2 19-20)
  • Company data

US

Volume depletion

vs. Sept. 2022 (vs. LY)

vs. Sept. 2019 (vs. 4Y)

trends to Sept.2023

3M

6M

12M

3M

6M

12M

Market (source Nielsen)

3.2%

3.0%

2.4%

26.6%

24.7%

21.3%

Market (source NABCA/Discuss)

-10.8%

-8.7%

-6.3%

7.6%

21.3%

17.7%

Cointreau in Volume (Source Company)

3.6%

4.2%

3.0%

47.4%

57.4%

56.8%

Cointreau in Value (source Company)

9.2%

9.2%

8.8%

75.1%

84.5%

86.4%

Price-Mix: +6 pts YoY

+30 pts vs. 2019-20

(12m basis - ended Sept. 2023)

Latin America: sales decline in Q2 YoY in a market showing softer tourism trends

  1. Sales up low to mid-single digit growth in Q2 YoY led by Bruichladdich, The Botanist and Cointreau
  1. The UK (restocking effects pre-duties increase) and Western Europe outperformed and generated strong growth
  1. Benelux and Africa ME continued to show solid dynamics led by whiskies and Cointreau
  1. Travel retail Europe and Eastern Europe impacted by geopolitics context
  1. China: high single-digit sales decline in Q2 YoY (approx. +60% vs. Q2 19-20) impacted by continued destocking in whiskies
  1. Rest of Asia: mid-teen sales growth in Q2 YoY led by Australia, Japan, New Zealand and Vietnam (Cointreau and Bruichladdich)

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Rémy Cointreau SA published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 08:08:39 UTC.