Rémy Cointreau: Consolidated Preliminary Results for the Year Ended 31 March 2009

PARIS--(Business Wire)--
Regulatory News:

Remarkable resilience in a historical year

Current operating profit down 12.9%

Profit before tax up 4.2%

Net Debt/EBITDA ratio: 2.99

The financial year ended 31 March 2009 was marked by a major event that
determines the Group`s long-term strategy: Rémy Cointreau (Paris:RCO) exited the
Maxxium distribution joint venture on 30 March 2009. The new distribution
network, as anticipated, became immediately operational in 38 markets worldwide.

This exit led to a compensation payment to Maxxium of €224 million, and to the
disposal of its investment in the joint venture for €60.4 million. Turnover for
the year declined organically by 11.6%, due to the economic environment,
significant destocking in the markets over a number of months, as well as
certain inventories being returned to the Group by Maxxium. This transition also
generated temporary additional costs of around €12 million.

In this context, Rémy Cointreau achieved a good performance in the current
crisis owing to a well executed transition, the dynamics of its brands and the
quality of its products.

Current operating profit was €137.0 million, an organic decline of 12.9%, in
line with guidance. The operating margin was, however, maintained at 19.2%
(21.9% for Group brands compared with 22.2% the previous year). Profit before
tax, benefiting fully from the improvement in financial charges, rose by 6.6%
(4.2% organic). Net profit-Group share was €86.1 million.

Group net debt, after paying the Maxxium compensation, was €531.9 million, an
increase of 20.6%. All these factors enabled the Group to achieve an A ratio
(Debt/EBITDA covenant below 3.50) of 2.99, thus confirming its sound finances.

Key figures

31 March 31 March % Change
(€ millions) 2009 2008 Published Organic*

Turnover 714.1 817.8 (12.7) (11.6)
Current operating profit 137.0 159.6 (14.2) (12.9)
- as % of turnover 19.2 19.5 - -
Other operating expenses 14.9 (0.6) - -
Profit before tax 120.6 113.2 6.6 4.2
Net profit/(loss) from continuing operations 86.1 93.8 (8.2) (10.2)
Net profit - Group share 86.1 98.4 (12.5) (14.3)

* The organic performance excludes the effect of currency movements

Divisional analysis of current operating profit

(€ millions ) 31 March 31 March % Change % Margin
2009 2008 Organic 2009
Cognac 75.1 93.5 (19.8) 24.1
Liqueurs & Spirits 53.2 53.2 1.5 27.1
Champagne 10.8 12.4 (3.2) 8.6
Sub-total/Group brands 139.1 159.1 (11.4) 21.9
Partner brands (2.1) 0.5 n/a n/a
Current operating profit 137.0 159.6 (12.9) 19.2

Cognac - Sales for these 12 months decreased by 13.6% (organic) to €311.9
million. Current operating profit was €75.1 million and the operating margin was
24.1%. The sustained price increases did not fully offset the volume declines
noted in the US and Russia, or the impact of destocking as a result of leaving
Maxxium. In Europe, the trends were positive overall. In China, Rémy Martin
retained double-digit growth. Advertising investment was increased and very
targeted towards Asia.

Liqueurs & Spirits - The division achieved a current operating profit of €53.2
million with a turnover of €196 million, an operating margin of 27.1% (25.1% in
the previous year). This performance reflected a policy of sustained prices, an
improvement in the product mix and the streamlining of marketing investment.
Cointreau was more affected due to the proportion of US sales. Metaxa, Mount Gay
Rum and Passoa, less exposed in the on-trade, held up well.

Champagne - The value strategy continued by the Group limited the decrease in
sales of its champagnes (-9.2%) to €125.9 million. Current operating profit was
€10.8 million with an organic operating margin of 9.3% supported by price
increases and lower advertising investment, even after absorbing a price
increase in grapes.

Partner brands - The cessation of two distribution contracts in the US led to a
decrease of almost 20% in turnover.

Consolidated results

Turnover of €714.1 million decreased by 11.6% (10.4% for Group brands).

Current operating profit amounted to €137.0 million, a 12.9% decline, while the
operating margin was stable at 19.2% (21.9% for Group brands).

Operating profit was €151.9 million, after taking into account net income of
€14.9 million, of which €13.6 million directly related to the exit from Maxxium.
In September 2008, the Group revised the provision for the exit compensation (a
release of €37.0 million) and recorded an impairment charge of €16.0 million in
respect of the value of Maxxium shares.

Net financial charges of €31.3 million was a significant improvement (+€14.5
million) compared with the published figure last year. The 2007/08 financial
year included an exceptional charge of €10.5 million for the early repayment
premium of the 6.50% bonds. The average debt decreased by almost 12%, while the
average interest rate rose by 1.4 points due to the increased cost of financing
the inventories of the co-operative and hedging at less favourable rates.

Profit before tax was €120.6 million, an increase of 6.6% (4.2% organic).

Profit from continuing operations was €86.1 million after tax. This takes into
account an effective tax charge of 31.1%, an increase compared with the previous
year (25.5%) mostly due to the non deductibility of the impairment charge in
respect of the Maxxium shares.

Net profit-Group share was €86.1 million, an organic decline of 14.3%, in line
with forecasts.

Net financial debt amounted to €531.9 million, an increase of €91 million. This
includes the payment of the compensation for exiting Maxxium (€224 million) net
of the sale of the Maxxium shares (€60.4 million), representing a net outflow of
€163.6 million. The positive movement in debt led to a Debt/EBITDA ratio of 2.99
which complies with the banking covenant of the Group`s syndicated credit (below
3.50). The confirmed financial resources of Rémy Cointreau amount to €812.4
million.

Equity amounted to €970.7 million, an increase of €59 million compared with the
previous year.

At the Annual General Meeting to be held on 28 July 2009, a proposed dividend of
€1.30 will be put to a shareholders` vote, with the option of payment in shares
of 50% of the dividend, or full payment in cash.

Outlook

In an uncertain economic environment, Rémy Cointreau decided to maintain its
value strategy, now based on a substantially restructured and controlled
distribution network, and to continue its strategy of carefully selected price
increases for its premium brands.

The Group deems it prudent at this stage not to provide profit guidance due to
the lack of visibility imposed by the economic climate in its principal markets.
Rémy Cointreau remains confident in its ability to successfully withstand this
period of unfavourable economic conditions, owing to the strength of its brands,
the dynamics provided by its new commercial resources, and the quality of the
financing at its disposal.

Rémy Cointreau
Analysts: Hervé Dumesny
Tel: 00 33 1 44 13 45 50
or
Press: Joëlle Jézéquel
Tel: 00 33 1 44 13 45 15
or
Caroline Sturdy
Tel: 07775 568 500

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