RÉMY COINTREAU | NEUTRAL | EUR210 VS. EUR205 Short term upside into Q1 sales

Remy Cointreau enjoys many positive catalysts. Beyond underlying growth in the
spirits markets, Remy Cointreau is well positioned through its high-end brand
portfolio enabling it to outperform the premium sprits segment. We are optimistic
for Q1 2022/23 sales growth as we anticipate a 20% organic revenue increase, driven
by a positive effect from both volumes and value. Remy Martin (72% of group sales)
should lead this growth. Furthermore, given recent weakness in the EUR, FX is set to
provide be a clear tailwind for Q1 and probably for FY 2022/23. We are also quite
confident in FY 2022/23 sales momentum as we anticipate 14% organic sales growth,
boosted by a further 4% FX positive impact. We anticipate a 100bp EBIT margin gain
to 26.5%