Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on REMY COINTREAU. We currently have 7 research reports from 1 professional analysts.
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Impressive Q3 on the back of further acceleration in China
19 Jan 17
Q3 trading update: sales were up +9% organically (cons. +4.2%) and +8.3% on reported figures. OG performance by division: Remy Martin +22.3% (cons. +9.3%, +19% excluding Chinese New Year (CNY) shipments), L&S +2.5% (cons. +4.6%), Partner brands -30.5% (cons. -15.6%). After 9M, the group sales are up 6% organically with cognac up +11.2% (10% excluding CNY). FY guidance is confirmed: growth in current operating profit at constant FX and scope of consolidation.
H1 results: China fuels margin improvement
24 Nov 16
H1 results: as a reminder the group reported 4.1% OG in sales at its trading update in October. The current operating profit was up +15.9% (vs. cons. at 11.2%, of which +7% organically). The operating margin expanded by 270bp to 24.1% (cons. 23.2%). By division. Remy Martin reported +410bp in the current operating margin, being fuelled by high-end products (renewed growth in China, a robust US). L&S reported +180bp in the operating margin driven by the US, an improved France, Russia and also China. For Partner brands, the margin contracted by 90bp due to the end of a contract for champagne distribution. The group’s net profit is up 14.7%. FY guidance confirmed: growth in current operating profit at constant FX and scope of consolidation.
Q2 above expectations lifted by the US and China
18 Oct 16
H1 update: sales grew organically +4.1% (cons. +2.4%, Q2: +7.4%). On reported figures sales were up +2.5% (FX: -1.6%). H1 performance by division: Remy Martin +5.1% (cons. +3.1%), L&S +5.1% (cons. +2.3%), Partner brands -3.1% (cons. -1.3%). The company maintained its FY guidance: improvement in current operating profit, assuming constant FX and scope of consolidation.
Flat Q1 but the underlying trends are reassuring
20 Jul 16
RC released its Q1 update. Sales were flat on an organic basis (vs. cons. at +1.5%) and -2.1% on reported figures. Organic performance by segment: Remy Martin -0.5% (cons. +0.9%), Liqueurs & Spirits -0.8% (cons. +2.9%) and Partner Brands +4.3% (cons. +1.7%). As a reminder, Q1 is a relatively small quarter for the company (c. 20% contribution to sales). Remy Cointreau expects organic sales to accelerate in the coming quarters and maintains its FY guidance.
Good FY driven by a strong US; FY guidance reflects volatility of markets
09 Jun 16
RC released its FY accounts this morning. As a reminder, the group reported +0.3% OG in sales in April. The organic operating profit was up +6.1% (vs. consensus +3.6%) and +14.4% on reported figures. OG operating profit by segment: Remy Martin +6.4% (cons. +4.3%), Liqueurs & Spirits -2.8% (cons. +1.1%), Partner brands -22.9% (cons. -12.5%). In the reported figures, the operating margin was up +80bp to 17% (RM +80bp, L&S -170bp, PB -60bp). Net profit attributable to the group was up 10.6% to €102.4m. The proposed dividend is €1.60 (vs. €1.53 last year). For FY16/17, the group expects to accelerate its move upmarket and to deliver growth in organic operating profit.
19 Apr 16
Remy Cointreau reported its Q4 and FY sales update. In Q4, Remy Martin’s sales grew +12.3% (cons. 7.5%) driven by China, Liqueurs & Spirits grew +6.9% (cons. 4.1%), whereas Partner brands recorded +2.9% (cons. -4.5%). On reported figures, Q4 sales grew +12.2%. On a FY basis, the group’s sales grew 0.3% (Remy Martin +3.2%, Liqueurs & Spirits -1.5%, Partner brands -8.1%) and +8.9% on reported figures.
13 Feb 17
Middlesbrough-based pawnbroker Ramsdens Holdings is set to join AIM on 15 February. Its growth is not coming from its core business but from providing foreign currency, pre-paid travel cards and international payments. The strategy is to increase the group’s online activities and grow the number of branches. In the year to March 2016, group revenues improved from £29.2m to £30m. The accounts of the main subsidiary show that foreign-currency margin rose from £5.36m to £7.59m. This contributes 35% of group gross profit. By contrast, the core business of pawnbroking, precious metal purchases and retail sales fell from £21.3m to £19.8m. Revenues from other financial services were flat at £2.6m. Ramsdens has 127 sites and last year it made an operating profit of £3.19m. In the six months to September 2016, revenues increased from £16.2m to £18.4m and operating profit improved from £2.81m to £3.48m. The placing will raise £15.6m at 86p a share, valuing the company at £26.5m. NorthEdge Capital, which backed a buyout in September 2014, will receive just over £10m from share sales. The NorthEdge stake will fall from 75.6% to 30.7%. The other £5m will go to the company and be used to repay the remaining loan notes and the costs of the flotation. By the end of March 2016, there were still £4m of loan notes outstanding to NorthEdge, with £4.86m paid off during the previous year.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.
Driving distribution – price target raised
26 Jan 17
Fever Tree’s (FEVR LN, HOLD, T/P 1250p) strong second half trading statement and clear ability to drive distribution forward this calendar year prompts us to upgrade both our full year 2016 and 2017 forecasts as well as raise our price target from 1080p to 1250p, which implies a full valuation for now.
Breakfast in America
24 Feb 17
Peacock Foods should ensure Greencore enjoys organic, profitable convenience food expansion in both the UK and US. The acquisition transforms America, in our view. Moreover, while long term mature market growth remains the salient investment case driver, Peacock’s benefits currently appear unrecognised in Greencore’s share price. BUY.
04 Nov 16
Looking at the top 50 non-listed casual dining and bar operators, it appears that the £80bn market for eating and drinking out in the UK is alive and well. The AlixPartners Growth Company Index (October 2016) shows that 2-year profit CAGR has improved over the last few years, and recent surveys from Greene King, Coffer Peach and Deloitte highlight elevated spend on out-of-home occasions. We attribute this to 1) a shift amongst consumers from an ownership to experience-led mentality which has driven habitual spend on leisure 2) an increasing focus on food from historically wet-led operators as they diversify their revenue streams to mitigate competition from the off-trade and match consumer gravitation towards eating out and convenience; 3) increasing regional penetration resulting from oversupply and high rental costs in London and 4) strong sector support from Private Equity investors, attracted to the Leisure sector's cash flow profile which can be leveraged against. Nevertheless, we may look back on 2016 as the peak for casual dining and bar operator profitability, particularly for London-weighted operators who face unfavourable rent and rate costs as well as potential loss of cheap migrant/seasonal labour. Past performance is certainly not a guide to future performance.