Summary of FY23 results FY23 LFL Current Operating Profit (COP) at Remy Cointreau grew +16.2% (c.+180bp ahead of co. cons) and adjusted net profit was a c.+2% beat. FY group COP margin increased +230bp to 27.7% (co. cons 27.4%). Organic COP margin expansion of +140bp was driven by gross margin expansion of +260bp and distribution / other of +10bp, partially offset by AandP investment of -130bp. From a divisional perspective, Cognac LFL COP grew +14.7% (co. cons +14.1%) while Liqueurs and Spirits division LFL COP grew +18.1% (co. cons +10.9%). Remy Cointreau announced a proposed dividend of EUR3.0 per share (made up of an EUR2.0 ordinary dividend and an EUR1.0 exceptional dividend). News We highlight that Remy Cointreau expects its group Q124 LFL sales to decline by at least mid-30s. Earnings We revise our FY24e / FY25e / FY26e EPS by c.+2%. Investment thesis We are tempted by the relative valuation of the shares but are mindful that it will likely not be until January-2024 (Q324 sales) that Remy Cointreau proves it is able to return the group to positive LFL sales growth. Rating and target price We maintain our Neutral rating. Our target price moves from EUR167 to EUR157. 15 questions for management Your FY23 gross margin reached 71.6% at FY19/20 scope and FX. Given that you continue to target a 72.0% gross margin in FY30e, should we expect minimal gross margin expansion in the intervening years?