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RÉMY COINTREAU

Analysis before buying or selling Rémy Cointreau shares

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Thanks to the information in this complete fact sheet, you will indeed discover how the Remy Cointreau share is quoted, what factors influence its graphical evolution and how to trade it on the long or short term. We will also give you information about the detailed activities of this French company, its direct competition as well as its alliances with other companies in order to give you all the cards to elaborate your analyses.

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Information on Rémy Cointreau shares
ISIN code: FR0000130395
Ticker: EPA: RCO
Index or market: Euronext Paris
 

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Elements to consider before selling or buying Rémy Cointreau shares

Analysis N°1

Firstly, it should be remembered that Rémy Cointreau shares are considered to be a Chinese stock in the sense that their market value is closely correlated to the Chinese economy.

Analysis N°2

The Group's sales are also cyclical and seasonal, and the financial year is therefore staggered and published on 31 March of each year.

Analysis N°3

We will also be following with the utmost attention the achievement of the objectives that the group has set for 2019/2020 as part of its strategic plan. This concerns, in particular, a move upmarket of the group's products in order to become the international leader in luxury spirits with a price above $50 per bottle. The target for the current operating margin is 18 to 20%. In the shorter term, we will of course be watching the annual results with the sales growth data and the increase in the company's net profit.

Analysis N°4

Much is also expected of the Chinese market and confirmation of its recovery in the high-end segment as well as sales to private customers. The American market and its evolution are also to be watched very closely.

Analysis N°5

The possible lifting of the embargo on Russia will also be one of the important points to monitor for the future of Rémy Cointreau.

Analysis N°6

Finally, speculation is still rife regarding a possible merger of the group with its competitor Brown Forman despite the determination shown by the Dubreuil family, which still wishes to retain control of the company thanks to its 50.81% of shares and 68% of voting rights.

Analysis before buying or selling Rémy Cointreau shares
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General presentation of Rémy Cointreau

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The French group Rémy Cointreau is currently one of the largest producers and distributors of spirits, cognacs and liqueurs in the world. However, its activities can be divided into different divisions according to the product range and the share of turnover it represents and as follows:

Cognacs represent more than 64.6% of the company's total turnover with the exploitation of the Rémy Martin brand.

Liqueurs and spirits generate 25.2% of Rémy Cointreau's turnover and include the Cointreau and Passoa brands for liqueurs, the Mount Gay brand for rum, the Rémy and Metaxa brands for brandy, and the Bruichladdich, Port Charlotte and Octipus brands for scotch and whisky.

Finally, the remaining 10.2% of the company's turnover comes from the sale of partner brand products, notably in the United States with the sotch and whisky brands The Famous Grouse and The Macallan, as well as the worldwide distribution of Piper Heidsieck and Charles Heidsieck champagnes.

From a strictly geographical point of view, the Rémy Cointreau group is present almost everywhere in the world and its sales are distributed as follows: The Americas account for the largest share of the group's turnover, with nearly 39.7%. Next comes Europe-Middle East-Africa, which generates nearly 31.5% of turnover, and finally Asia-Pacific, where the company generates 28.8% of its turnover.

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The major competitors of Rémy Cointreau

Currently, the French group Rémy Cointreau is one of the leading international companies in the spirits sector. But in reality, this group is only ranked 11th in the world in this field and is therefore outranked by about ten competitors that you should watch and know about before taking a position on this stock. Here are the details with a ranking of the ten biggest competitors of Rémy Cointreau.

Diaego

The leader in this sector is currently the English company Diaego, which specialises in alcoholic drinks. This group was strengthened by the 1997 merger of Grand Metropolitan and Guinness Plc, which enabled it to become the largest company in this sector.

Pernod-Ricard

The French group Pernod-Ricard occupies the second place in this ranking and is specialized in the production and sale of wines and spirits. It also reached this position following a merger with Vin & Spirit, which it acquired from the state of Sweden.

Bacardi

The third place in this ranking is occupied by the Cuban company Bacardi, which specializes in the production and sale of rum and is based in Bermuda.

Brown Forman

In fourth place is the American company Brown Forman, which is currently listed on the NYSE.

ThaiBev

In fifth place is the Thai company ThaiBev which is known for producing some of the most popular beers in Asia. Based in Singapore, this company has factories in many other countries such as China, Scotland, France and Poland.

Möet Hennessy

The sixth place is currently occupied by the Möet Hennessy group belonging to the LVMH group.

Beam

In seventh place, we find the company Beam.

Willian Grant & Sons

Ninth place goes to Willian Grant & Sons, a company specializing in scotch and whisky.

United Spirit

Finally, the tenth place goes to United Spirit.

The major partners of Rémy Cointreau

The Rémy Cointreau group bases most of its success on its popularity and the optimal distribution of its products throughout the world. To achieve this goal, it can rely on good marketing, but also on a strategy of partnerships and strategic alliances with other companies around the world. Here are some recent examples of alliances set up by the group.

Bollinger Diffusion

In 2016, the Rémy Cointreau group set up a partnership with the Bollinger Diffusion company, which thus intends to develop its spirits sales division thanks to certain Rémy Cointreau products. The Bollinger group, which is known for selling mainly family wines, will be responsible for the exclusive distribution in France of Rémy Martin cognacs as well as the Rémy Martin and Louis XIII brands and Mount Gay rum. Bollinger's Diffusion division was designed to offer a varied portfolio of spirits to its clients and holds long-term contracts with Delamain cognacs and Tullibardine and Mackinlay whiskies. Thanks to the alliance signed with Rémy Cointreau, Bollinger expects to maintain its strong position in the distribution of fine wine and premium spirits brands in France.

Lucas Bols

In the same year, another interesting partnership was established by Rémy Cointreau, this time with the Dutch company Lucas Bols, which specialises in the manufacture of liqueurs. The two entities have created a joint venture to manage the activities of Rémy Cointreau's Passoa subsidiary. The new entity has been entrusted with the operation and further development of the brand's international activities. All of Passoa's activities have been integrated into this joint venture, including of course production, but also product distribution, brands and inventory. The Lucas Bols group will contribute to the success of this arrangement with its experience and working capital and will ensure the operational control and financial management of this entity.

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Positive factors for Rémy Cointreau shares
The factors in favour of a rise in the Rémy Cointreau share price:

The Rémy Cointreau group has been able to diversify its activities. Indeed, the company which used to specialize solely in cognac with the Rémy Martin brand which still accounts for more than 60% of turnover, is now involved in various fields including liqueurs and spirits such as Cointreau, Passoa or Metaxa, rum with Mount Gay and whisky with Bruichladdich.

The group also benefits from a strategically interesting international positioning with a strong presence in the United States, Asia-Pacific and of course Europe. Thanks to this homogeneous distribution, Rémy Cointreau is protected from the risks associated with a single business sector.

To protect itself from periods of economic crisis, Rémy Cointreau also relies heavily on its top-of-the-range and premium brands, in particular thanks to the Centaure ranges, which are particularly sought after in Asia.

Rémy Cointreau's strategy of marketing partner brands to further diversify its activities is also appreciated. These activities are generating more and more turnover.

Stock market investors will also appreciate the value of these shares, which are rather cheap and approaching interesting technical support because of large stocks.

Finally, the last strong point of this company is of course its particularly healthy financial situation, especially following the Océane issue in summer 2016.

Negative factors for Rémy Cointreau shares
The factors in favour of a drop in the Rémy Cointreau share price:

First of all, Rémy Cointreau's position in 11th place in the world rankings of spirits distributors is no accident. Indeed, the company is smaller than its competitors and is still very dependent on the cognac sector.

The group's activities also depend to a large extent on the tourism sector, which represents more than 15% of its sales, and is therefore sensitive to the vagaries of this market as well as to the risks of attacks.

Although the Group's activities tend to vary more and more over the years, the operational disparity between the various brands and activities remains significant, with low profitability, particularly in the distribution of partner brands.

The liqueurs produced and distributed by the Group in mature markets are exposed to significant geographic risk, as are the cognacs, which are highly exposed to Asia-Pacific.

The end of the distribution contract for the Heidseick champagne brand is also regrettable, as it has a significant impact on the sales of this subsidiary and has a moderate impact on the company.

Finally, market analysts agree that Rémy Cointreau shares remain relatively expensive compared to some of its competitors such as Diaego and Pernod Ricard.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the major shareholders of Rémy Cointreau?

Remy Cointreau's capital is divided among several major shareholders, including the Heriard Dubreuil family with 53.00%, APG Asset Management with 6.97%, Lindsell Train with 4.57%, BlackRock Investment Management with 3.87%, Alliance Fine Champagne 2.19%, The Vanguard Group 1.32%, Norges bank Investment Management 0.76%, Remy Cointreau 0.72%, Keva 0.72% and BlackRock Fund Advisors 0.62%.

When did the merger between Rémy Martin and Cointreau take place?

In 1990, Rémy Martin and Cointreau merged to create the Remy Cointreau group as we know it today. In 1999, the group joined forces with the Edrington and Fortune Brands groups to create a global distribution network. Subsequently, other partnerships and mergers or acquisitions will allow the group to gain market share.

Can I invest in Remy Cointreau shares online?

Of course, it is possible to trade Remy Cointreau shares online. To do this, you can create an account on an online trading platform or go through your bank via a PEA or securities account. You can then access this share as well as other shares listed on the major financial and stock exchanges.

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