Hello, and welcome to the 2021 to 2022 Q1 sales publication. My name is Jess, and I'll be your coordinator for today's event. For the duration of the call, your lines will be on listen- only. However, there will be the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question at any time. If at any point you require assistance, please press star zero on your telephone keypad and you will be connected to an operator. I will now hand you over to your host, Luca Marotta, CFO, to begin today's call. Thank you. Good morning, everyone. Thank you for being here with us this morning. As you have seen in the press release, the Q1 sales showed a strong start to the year at 105% growth compared to last year on an organic basis. In addition, this performance implies that sales were up +36.5% compared to Q1 2019/2020. To put it another way, we are well above the pre-pandemic levels. This performance reflects, first of all, a broad-based growth with all regions, all brands contributing to this growth. While the U.S. continued to enjoy what we call the new paradigm, Greater China confirmed the recovery seen in H2 2021, and Europe as well is gradually emerging from the sanitary crisis. From a channel point of view, the group relied on the sharp on-trade reopening in the U.S. and more importantly, a stronger resilience of the off-trade channel to a level much above Q1 2019/2020, both in the U.S. and in Europe. At the same time, Greater China continues to perform very, very well. Second point on this performance, this does reflect a low base of comparison across the world. This effect, however, will ease throughout the year. Finally, as expected and guided, some significant replenishment effect, mainly in the U.S. As a reminder, we ended the year 2021 with an extremely low level of inventories, and we are facing a stronger demand on the back of the new U.S. paradigm. Looking at overall global sales performed by region. Americas, as global region, generated a triple-digit sales growth, led by strong underlying demand and some replenishment effect. APAC region posted a sales growth that was close to triple-digit, confirmed the H2 2021 sharp recovery. Finally, EMEA region recorded a very high double-digit growth supported by on-trade reopening since May, June, and a low base of comps and low inventories at the end of the previous year. This was sell-in. This was what is inside our shipments. In terms of value depletions at group level, so the best approx of the final sell-out, we recorded a strong double-digit growth in Europe and in Greater China over the last three months. While depletions, as you can see, in the U.S. were down mid-single digit versus last year. One additional word for the U.S. In the U.S., this reflects a high base of comps and a low level of current inventories, still now, especially on 1738 Accord Royal. Excluding, stripping off 1738, the group U.S. value depletions would have been up mid-single digit. On top of that, like many industries, many sectors, we faced some global supply chain tension at both customs and truck levels. This extended and continues to extend the total supply chains lead time. On a two-year basis, U.S. group value depletions were up, as you can see, very strong double digit, which illustrates quite well and clearly that we drove the up-beating dynamic of the market. To conclude this very important first slide, we reiterate, we repeat, we reassert our strong confidence for the full year. Let's move to the Q1 sales analysis, line number three. Some figures here. Sales amounted to EUR 293.1 million, up EUR 143 million year-over-year or +95.3% on a reported basis. This reflects a very strong organic gains at +105% or EUR 157.6 million, which can be divided in +75.2% volume effect and +29.80%, +30 on price mix. A small marginal scope benefit of EUR 1.4 million, i.e. +0.9% linked to the turnover of the acquisition of J.R. Brillet and Telmont, and a negative currency translation impact of around EUR 16 million, -15.9% or 10.6%. This was largely driven by the U.S. dollar, which contributed negatively to EUR 16 million to the total loss in terms of our currency translation of the period. Most of our other currencies also deteriorated, including Japanese yen, Russian ruble, Hong Kong dollar. Only four currencies generated marginal currency gains. Australian dollar, British pound, Chinese yuan, and Canadian dollar. Now, let's turn to slide number four, which shows on the left in gray, our quarterly performance of the past 9 quarters and the 12 months rolling organic performance of our group brands in red, which stand on a 12 months rolling basis at +26.6% at the end of June. The Q1 2021/2022 performance confirmed the recovery seen in H2 2021. Of course, low base of comps and replenishment have been a key support to this outstanding quarterly performance. This performance was already estimated and we are performing as we expect. Beyond that, our sales are also well above pre-COVID levels and grew by 36.5% compared to Q1 2019/2020, as shown by the right part of the slide in red. Now, let's turn to slide number five, and to dig into organic trends, global trends by region. Let's start with the Americas, whose organic sales were up triple digits in Q1 versus last year and close to triple digits versus Q1 2019/2020 as well. In the U.S., sales were equally up triple digits, benefiting from a strong underlying demand, which confirms the new pattern of consumption. The quarter also enjoys significant replenishment on the back of the low level of inventory at the end of March, and Rémy Cointreau recorded very dynamic trends, supported by sharp on-trade reopening and a strongly resilient off-trade. However, very high comps, coupled with the low level inventories and high demand weighed on cognac depletions, and in addition, the industry's lead time has increased on the back of supply chains' global tension in terms of both custom and trucks. I repeat that because it's very important. As a result, our group brands, total brands value depletion, were slightly down at -5% over the last three months. Implying +10% growth over six months and +33.1% growth over the 12-month period ending June. In Canada, sales growth was also triple-digit, led by cognac division and St-Rémy, while Latin America enjoyed the same pace of growth, thanks to early sign of recovery in tourist areas. End of June, the Americas accounted for 59% of our group sales, up three points year-on-year. APAC, Asia Pacific organic sales growth was close to triple digits versus last year as well, and up double digits excluding Asian travel retail on a two-year basis. A very sound, strong performance. Greater China grew at a very strong double-digit growth in Q1, led by continuous strong momentum both in on and the off-trade. From a sub-region standpoint, which is interesting, the strong performance of Mainland China and Hong Kong more than offset weaknesses in Taiwan, the latter one being impacted since May by the resurgence of COVID cases. Looking inside Mainland China, specifically, value depletions, so the health of the business, were up very strong double digits in Q1, led in term of range by Rémy Martin CLUB, but also XO and LOUIS XIII. From a channel standpoint, all channels are booming. E-commerce, which accounted for 30% sales in Q1, was up 50% year-on-year, and off-trade as well are outperforming the market while our own boutiques recorded an amazing start to the year. Rest of Asia also reported significant growth in terms of top line compared to last year, led by Australia, and this despite the implementation of several health sanitary restrictions in the North Asia and lockdowns in the south. End of June 2021, APAC accounted for 23% of our group sales, down one point versus last year. EMEA organization showed a very high double-digit growth in Q1 versus last year, but still slightly down on a two-year basis. All brands and countries, top performance including U.K., Benelux, and Germany, contributed to this excellent performance led by the gradual on-trade reopening since May, June, and the strong resilience of the off-trade. More broadly, more largely, and beyond the low base of comps, this performance reflects some replenishment effect linked to the positive expectation before the summer seasons. End of June, EMEA region accounted for 18% of group sales, down two points versus last year. Now, we switch from region to division and moving to our Q1 sales growth by division versus last year, i.e., Q1 2021, slide six. Our 105% organic sales growth, more than double last year at group level, was driven by an outstanding performance of the Cognac division, up at 114.4%, while Liqueurs & Spirits were strongly up at 90.5%, quite the same speed. Partner Brands only into brackets, + 55.3%. In the Q1, Partner Brands accounted for 3% of group sales, stable year-on-year. It's very interesting also to look inside slide seven, where we have the same chart, versus Q1 2019/2020, pre-COVID, pre-pandemic levels. As you can see, all divisions recorded a strong double-digit organic growth over a two-year basis, i.e., before the pandemic. Cognac up 29.8%, while Liqueurs & Spirits up 58%, more than that. With the latter, we can start to measure all the work that's been done in the last two years by our teams, especially on some brands like Cointreau, our Bruichladdich, and The Botanist Gin, which gained market share across the globe, and this according to the strategic plan highlighted by Eric Vallat one year ago. Finally, Partner Brands were up as well, +21.8%. All in all, the group was up 36.5% in terms of top line on organic basis versus Q1 2019/2020. Now, let's turn to slide number eight and the analysis by division, starting with Cognac. We just mentioned that Cognac posted an organic growth of 114.4% in Q1 versus last year, and up more or less 30%, 29.8% versus two years ago. What happened inside the regions? In North America, Cognac sales were up triple digits, supported by stronger driving demand, fueled by the sharp on-trade reopening, as well as solid resiliency off-trade. The overall performance has been also reinforced by synergies and U.S. replenishment on the back of a low level inventory end of March, as well as new packaging, which require more stock. This context, coupled with high comps on extended lead time weighed on depletions, particularly on 1738. This translated into a decrease of 15.9% in our volume depletions in this case in the last three months period versus last year, but which nevertheless represented an increase of 48.5% versus 2019. Down the short term specific element on volume depletions, but very strong compared to two years ago. Excluding 1738, which was victim of its own success and touched by the logistics perturbation as well, volume depletions would have been slightly positive over the last three months as well. This technical effect on depletions this time will gradually ease in the coming months and the strong underlying demand to become increasingly visible in our volume depletion as well. Price mix effect on depletion were positive by two to three points in the 12 months period ending June, Even stronger in the last three months, six to seven points. Within APAC, Greater China recorded a growth close to triple digits, with Mainland China enjoying a very strong growth across the cognac portfolio. In Mainland China, value depletion trends were up strong double digits in Q1, led by CLUB, XO, LOUIS XIII, with all channels showing very dynamic trends. Hong Kong showed encouraging trends with early sign of a local consumption recovery, even if on marginal basis. Macau as well was back to growth. However, Taiwan sales were down, impacted by the resurgence of COVID cases. Finally, sales in Southeast Asia recorded a triple-digit growth supported by strong on-trade consumption despite the closure of several on-trade markets. North Asia, Japan, was up double-digit as well in a continued challenging sanitary context. Inside EMEA, Cognac sales, which generated very strong double-digit growth. This performance reflected broad-based growth led by U.K., Germany, and Switzerland for Cognac. It was helped by low base of comps as well as solid expectation before the summer season with the Iberian countries. Talking about the volume value equation of the Cognac business, the 114.4% organic sales growth was driven by 94.6% volume increase and at 19.8%, around 20% price mix gain. End of June, Cognac Division accounted for 68% of our sales, up two points year-on-year. Let's move to slide number nine, and a few words on the new Rémy Martin campaign in the U.S. As already mentioned by Eric Vallat at our full-year result one month ago, the growth of our sales has allowed ourselves to invest even more than budgeted, than estimated, to increase the awareness and the relevance of the brand in the U.S. We launched the next iteration of our Team Up for Excellence campaign with the American artist Usher a few weeks ago. Beyond driving relevance and awareness, the objective was to leverage the excellent momentum that we experienced in the U.S. The first result are very promising and created a buzz on social media. With more than 3 million viewers on YouTube, we reached our targeted audience and an all-time high on social share of mouth. As a result, Rémy Martin was ranked the third top spirit brand on social media by The Spirits Business, and we received an award at the Cannes Lions Festival of Creativity. Meanwhile, we managed to increase our visibility through a wide billboard campaign in several key cities in the U.S., as you can see. This campaign will be deployed all around and throughout the year. Now, let's turn to Liqueurs & Spirits division, slide number 10. The Liqueurs & Spirits division posted very strong growth, +90.5% in the Q1 versus last year, i.e., +58%, if you compare to two years ago, Q1 2019/2020. Looking at the volume value equation on Liqueurs & Spirits for Q1, the +90.5% organic sales growth was driven by both volumes, 68.9%, and price mix, +21.6%. It's very interesting to look that the price mix is quite the same in terms of increase between cognac and Liqueurs & Spirits. Around a little bit more for Liqueurs & Spirits, 20%. Very strong. End of June, Liqueurs & Spirits accounted for 29% of sales, down 2 points versus last year. Let's review overall, and very synthetically, the performance of the division by region. In North America, sales were close to triple digits growth as well, notably driven by, first of all, Cointreau, which was up triple-digit. This performance reflects a steady high demand in key states such as California, the sharp reopening of the on-trade, as well as the strong resilience of the off-trade. Continued booming at-home consumption and its successful strategic focus on the original Margarita cocktail have been key drivers. Volume depletion were up +21.8% in the last three months versus last year and up 52.2% on a two-year basis. Price mix benefits added around 2 points in the 12-month period ending in June 2021. Very strong result for The Botanist in the U.S. and better-than-expected sales in Canada for St-Rémy. Latin America recorded as well a triple-digit sales growth thanks to low base accounts and a resurgence or recovery from tourist areas. In EMEA, the second region in terms of weight for Liqueurs & Spirits, sales grew very close to triple digits, led by all brands and regions, particularly Western and Eastern Europe. Overall, better-than-expected performance was due to an early on-trade reopening as well as solid expectation from our distributor before the summer season. Cointreau posted a very strong start to the year, resulting from market share gains in the off-trade and strong on-trade activation. METAXA generated a very strong growth led by solid commercial execution in Eastern Europe and some replenishment in Greece clearly ahead of the summer season. Botanist and our whisky portfolio recorded triple-digit growth, reflecting market share gains in Western Europe as well as some new listing gains like in France. In APAC, Liqueurs & Spirits division had a recovery that we have seen in H2 2021 in Greater China that has been confirmed in Q1, led by the amazing traction of our Single Malt Whiskies portfolio with the younger generation, more sophisticated new codes, including Octomore, the most peated whisky in the world, which is particularly well appreciated in the south of China. Elsewhere, business grew at a very strong double-digit growth led by Southeast Asia, thanks to amazing growth of Cointreau in Australia and in New Zealand. Moving to slide number 11, some initiatives were made by Cointreau to continue to leverage the cocktail culture around the Cointreau Margarita. Given the strong progress that we did last year on the off-trade market, the objective is to continue to hammer to leverage this gain, notably in on-trade. This is what we did in the U.K., for instance, with the Margarita Day to celebrate it. Cointreau teamed up with the Supper London delivery service to launch the first home deliveries of Margaritas. This is also the case with our Cointreau Margarita Terraces in London, when we have selected five key terraces in May to celebrate the return of hospitality. Last example, on the right, with our commando teams in five key cities in China, where Cointreau celebrated the Margarita original through a series of exceptional events with our key business partners, medias, and key opinion leaders. Liqueurs & Spirits division is not only about Cointreau. There are other brands, and this time we took the opportunity to say 1 specific word on The Botanist and our whisky portfolio. Let's start with The Botanist and the launch of its first innovation, a limited edition bottling to celebrate its 10th anniversary. Crafted by our head distiller, this small batch of dry gin has been matured in ex-Bordeaux French red wine casks since 2011. Through this innovation, we drove positive uplift in all metrics and channels. More than +300% in social media engagement, +22% of new website visitors, and multiplied by four the number of sign-ups in their CRM platform. Last but not least, the opening of our first pop-up store in Tokyo at the famous Roppongi Hills, where during the week, they organized some tasting workshops to introduce our whisky brands in a unique place with an exceptional decoration highlighting the importance of transparency. Throughout this 360 degrees activation, which brought people into the Bruichladdich universe, the results were really strong in terms of media coverage and also in terms of sales result. The latter increased by more than 80% in the Q1 in Japan, and we were out of stock following the success of this event. Last slide, and then we can go to sleep. No, we can go to the Q&A for sure. I'm joking. Let's now turn to Slide 13 in the 2021/2022 full year outlook. On the heels of the strong performance in Q1, but expected, we reiterate our strong confidence in our ability to continue to outperform the exceptional spirits market and to generate a year of strong growth. 2021/2022 is expected to be, as already said, a year of two halves, with H1 benefiting from low base of comparison and some replenishments effect that will be mostly skewed to Q1, and the second half of the year, H2, will renew with higher comps. Being ahead of our 2030 roadmap and given the favorable environment, we have decided, as you know, as already stated and communicated, to step up our 2021/2022 strategic investment campaign, including strategic advertising promotion, strategic OpEx, CapEx, and strategic increase of our working capital to fuel the rebound and to fuel our brand awareness and desirability. The expected mid-teens growth operating profit, that is what we guided for at this stage, should be tempered by the currency effect, which we expect between -EUR 16 million to -EUR 20 million at group level, and by a marginal negative scope effect of -EUR 2 million linked to the acquisition of J.R. Brillet and Telmont. I'll be happy to take your question. Thank you so much. If you would like to ask a question, please press star one on your telephone keypad. Please ensure your line is unmuted locally, as you will be advised when to ask your question. And once again, press star one if you would like to ask a question. The first question comes from the line of Laurence Whyatt from Barclays. Please go ahead. Morning, Luca Marotta. Thanks very much for the question. Three from me, if that's okay with you. You mentioned there was a strong replenishment in the U.S. channel, and I understand at the end of the full year, you're on about 30 days worth of stock in the channel. Could you let us know what sort of levels we are now at in the U.S. in terms of your cognac portfolio? Are we back to the 90 days of stock you would normally expect to be in the channel? Secondly, you mentioned that Germany, the U.K., and Switzerland were very strong in EMEA for the success of the cognac business. You mentioned Eastern and Western Europe for Liqueurs & Spirits. I was wondering if you could be a bit more specific on which exact countries were driving the success of the Liqueurs & Spirits in EMEA. Finally, you mentioned before that you are going to be upweighting your advertising spend this year to take advantage of your strong sales. I was wondering if the cost of advertising have changed at all recently. Has there been any change there? Are you getting the same bang for your buck in the advertising? Similarly, on costs, have you experienced any increase in logistic costs or any other costs that are potentially related to COVID or elsewhere? Thank you very much. Thank you for your question. If I answer analytically, we'll stay here two hours. Okay, I will try to be synthetic. Let's start with the stock level in the U.S. and one word also in the other, because it's a global question. In the U.S., as far as I speak at this stage, our level of inventory is still low, notably on 1738. Replenishment has happened, but we'll continue partially into Q2, probably until October as well. As we state where we stand, we stand more than March for the VSOP, more or less around 1.5-1.7 months. It's very complicated to be precise because the new paradigm is changing, it is improving. The coverage in months doesn't mean so much. The absolute value are booming because you have to cover much more. The into bracket issue, if we talk to that, mathematically speaking, is 1738, where we had only just a few days, weeks in March, now has increased as well, but no more than one month on average. It depends. Take the state from the best. There is clearly a revision that will continue in the Q2, probably until October, and we are still on the low level. One word, we haven't said that 90 days is the normal considered new paradigm. We said more around two months of coverage in the end of the Q2. For these victims of our success and also the increase of lead time, we'll answer that on top for the logistic reason. We have a little bit more time to reach this kind of stock level. The major reason is that the success is clearly better than expected in terms of final underlying demand. One word on China in terms of stock, the sell-in, sell-out were quite aligned, so our level in inventory is healthy. The rest of the world, we have done, as you remember, good job previously, so we were very low. We are profiting of that, where this cleaning up in inventories, according to this depletion, was already done, particularly in the EMEA. On the positive side, we have more positive expectation from the retailers before the summer season. Okay, COVID is not behind us, it's still there, away, so things can change, but at this stage, we are still a little bit on the low level, and the performance are little better than expected for the EMEA. This was the first question. EMEA performance for key countries in Eastern Europe was the classical important countries for Liqueurs & Spirits, or Czech Republic, and partially Russia, and some other minor countries, more the total ecosystem of Eastern Europe that has worked according to our expectation. That is the case for Liqueurs & Spirits. A&P cost change. No, we did not see that. We are not seeing an increase of the cost of doing business in terms of advertising and promotion. It is real, a will from our side to profit of the increased gross margin that I confirm, despite all the impact that we might have a negative way from the logistic crisis, will be increase in gross margin for the year. That will be the first driver to fuel an increased pattern, as already stated six months ago, of investment. We are not changing guidance in terms of increased spending. We are still set on the same hypothesis. The strong performance, the Q1 in sales, is not something which is not unexpected. Everything is going according to our global overall vision. Certainly, if you go into detail from one key state to one key brand, we might have some difference. Overall, we are running at the pace we estimated, and we stick to our plans. No increase to our A&P base cost, different things for logistics. What happens at this stage, and not only for Rémy Cointreau, it's something that is impacting all the industry, Liqueurs & Spirits, and all industry from what we understand and what we know as well. On the back of the pandemic and the sharp global economic recovery, the world supply and global chain at worldwide level is under tension at both level, containers level, customs timing, and also trucks, mainly U.S., as you know. Several industries are impacted by this scarcity of capacity. In this context, a higher demand that we are witnessing right now by our final consumer versus offer has, in a way, magnified the logistic issues, magnified, and a low level of stock at the end of March. That this was an increase even more for our sales compared to the others in terms of the realization, faced with these difficulties. Being a little bit less philosophical, we observed an increase of the lead time. From one to two months. Two months for some countries in Asia or Australia as well, and 20-30 days for the U.S. Without being polemics, but it's a fact, lack of labor force in the U.S. to be truck drivers or dock workers does not help at all. We are stuck more time than we should need at custom level in the docks and the ports. Tension will probably remain for a while because all the market is dynamic. We are beating the market in many countries, but also they are not sleeping, our competitors. They are also performing very well. There is a fight. It will not be solved overnight. In this context, there is some other cost. This is not expected, but we are managing to integrate that, and our gross margin will continue to be strongly accretive in terms of basis point compared to last year. We are adjusting our internal cost saving footprint to be able to deliver these objectives despite the tension on logistics. In this context, we expect, and you should expect, to continue to replenish throughout the second quarter in term of sell-in or even until October, and to land more or less around two months of inventories. Clearly, this de-phasing between demand, operation, and then because of the three-tier system or five to six in China, you have additional lead time to reach the final sell-out, might create also in the coming months, some discrepancies that need to be explained by us to you, by Celia, Laurence, and me when we met, by Eric Vallat, because otherwise, figure will be complicated to understand. We highlighted many times in the past technical effect of the sell-in, now we are entering a new, more complex world. We will highlight some technical effect on the sell-out or on depletion, because sell-in comes first. This increasing lead time process could change a bit the reading of the figures.I hope I was clear. I'm sure I was long, but I hope at least it's clear. The next question comes from the line of Fintan Ryan from JP Morgan. Please go ahead. Good morning, Luca. Thanks for the opportunity to ask some questions. Just three from me, please. Firstly, just to confirm on the guidance, I think you said that you're still in for mid-teens organic EBIT growth. I think back when we spoke in June, you'd be looking for mid as well, mid-teens organic sales growth. Given the story you talk about logistics costs, is it fair to say that maybe the Q1 momentum, maybe that the organic sales outlook is a bit higher than you previously anticipated, but you're still keeping your powder dry in terms of organic EBIT growth? Secondly, Luca, you mentioned the focus on the roll out of Cointreau in China. I appreciate you said it's a test launch at five cities currently, but is there any sort of changes in terms of how you're pitching the product to the Chinese consumer versus the Margarita serves that you're sort of talking about in Europe and North America? Any sort of complementarities or differences in terms of route to market and appreciate e-commerce as well, might be a bigger driver for that brand. Finally, just a sort of a more technical point, just saw that you're in a minor legal dispute with Canopy Growth over one of their RTD products called Quatreau. I think that in terms of the press article I read yesterday, I think one of Rémy Cointreau's arguments was that they're looking to launch into the RTD space. I appreciate probably there's a lot of things going on in the background, but could you elaborate on what you'd be looking at or considering in terms of RTD launches? Are there key brands that'd be behind that or markets that you'd be targeting? Thank you. Thank you for your questions. Let's start with the consensus. At this stage, we start with the full year, and then I will elaborate on the H1. On the full year, we confirm what you already said. We stick with the mid-teens in terms of operating profit growth and as well, indirect in terms of top line, because as you know, we don't guide on top lines. We considered that we are confident to have a muted top evolution, meaning at this stage, at yearly level on the year two halves, strong H1, even strong Q1, a little bit less strong, more than a little bit less strong H2. We think to have an equal speed between top line and bottom line, mid-teens. At this stage, talking a bit more technically with the consensus in terms of yearly level, we are relatively comfortable what you expect globally because the market does not fully consider at yearly level that there will be a year strong investment in A&P, but strategic OpEx as well. Consensus is not a mid-teens. We confirm that we plan to be growth but around mid-teens. More technically, consensus is not aligned to our Forex impact negative expectation that I asked and reiterate just before, because if we say something, we should like that you listen to that. In terms of the H1 consensus, we are comfortable in terms of top line operating profit as the market seems to have considered different in terms of pace of growth between Q1 and Q2 between to the comps and the recognition. Overall, the +105% of top line is a very good result, but it's a small quarter. Last year, the absolute value speaks for themselves, EUR 150 million in terms of top line Q1, EUR 280 Q2. It's still early, and everything is going as expected, and we stick to our plans, investing more. In terms of the second question in China, the clear turning point in Liqueurs & Spirits in China at this stage is not Cointreau, it's more the whisky, where we are grabbing new consumer, younger generation, new code, something which is really new and very positive. Because if it continues like that, we might have positive result at very high double-digit growth on this product for the following quarters and years. There's a clear, very strategic. On Cointreau, nothing changed in terms of global consumption. We are still in the on-trade, more the off-trade, but we are also profiting of a different commercial footprint for Cointreau to be able to tackle better the intermediate level. We changed something at the commercial level, but in terms of consumption base, there is no major switch. I insist the big news out of cognac for China is single malt whisky. Quatreau. As you know, we do not comment current legal compliance. Our approach is drink less but better, is mostly throughout mix and price, not volume. Overall, as global thinking process, we are not interested in this market, the ready-to-drink or so at this stage. No need to replace alcoholic volumes by non-alcoholic volumes. With that said, some of these new categories, like low ABV, could make some sense for some of our brands in the future, and we are monitoring closely consumer trends which are emerging, and we remain open for all options. No decision or plan has been set forth. Why we are making compliance on that? Because it's our brand. They are calling Quatreau, when you spell it, there is a clear confusion. I don't want anybody to be called with my name if it's not me. I don't want somebody called Marotta or using the success of Cointreau to be on the field and surfing on the wave of something that does not belong to them. Simple as that. It's our property, and we fight for that. Without entering a more deep analysis. The next question comes from the line of Simon Hales from Citi. Please go ahead. Thank you. Morning, Luca. A couple from me, please. Can I just go back to the EMEA region? Obviously, a good start to the year. I think you talked about seeing some restocking or some replenishment as the on-premise has been reopening there. I wonder if you could help us maybe quantify perhaps how much of the benefit you saw in Q1 from that, and should we expect that to continue at all into Q2? Do you think ahead of the summer season now, the on-premise and stock levels are at the right levels? Secondly, I may have missed this, but with regards to logistical costs and the tension you're seeing in the supply chain, do you think those costs have worsened since you talked to us at the full-year results in terms of how you see that outlook for the whole of the fiscal year, or is it in line with your expectations overall? Finally, I wonder if you could just update us a little bit on the travel retail situation. You didn't mention it much, but I know there is obviously some increased tourism to the Americas and parts of Asia. Thank you for the question. Could you repeat more synthetically the second one on the logistic cost because the sound is very low, I cannot hear you very well. Sure, Luca. Your pool is too noisy, so joking aside. It's whether or not you think that logistical cost backdrop, the tensions in the supply chain, the extra costs there, have been getting worse since you updated us at the full-year results in early June, or whether what we're seeing there is really in line with the expectations that you saw for the full fiscal year anyway? Clear. EMEA region, slightly better than expected. In terms of quantification, we are not talking a big amount, EUR 3 million, EUR 4 million. Can we expect this to continue in the Q2? It depends, clearly, on the summer season. It depends on the Delta variants, because we have some very good expectation. The kickoff was very good, but now there's the match to be able to play. The match is now almost all these green pass, which are healthy measure that are very important, but can also limit a bit the enthusiasm, maybe. I'd like to be prudent on the Q2. I can rehash what are our expectation for global Europe for the year in terms of selling, so top line. It is mid-single digit growth because low inventories at the end of the year. Depletion sell out as well, mid-single digit in terms of value depletions. Remembering that we are clearly linked to the final consumption and the fact that the dynamic consumption will be there because we have less pricing increasing power compared to cognac. It's more a volume game, also because most of the Liqueurs & Spirits brands that are very important for Europe are already very attractive in terms of gross margin. The more you sell, the more you are beating the gross margin at group level. Good result. What will be in the Q2? Logistic cost, it is clear, worse than expected. Even one month ago, the situation is sharply deteriorating, but we are taking all the measure, and we are confident that we will respect our overall financial economic estimation that are based as a first tool on the sharp increase of the gross margin. We will offset this logistics increase thanks to cost-saving program or increasing our gross margin. Travel retail. Travel retail, if you consider performance in Q1 compared to last year, is clearly a very good one. That is very small basis. 2021/2022 will be still another tough year. Recovery will take some time. We do not expect to be back for travel retail or region, consider to pre-COVID level before 2023, 2024. It's taking a little more time as well at this stage. Historically, you remember travel retail was very important for us, around 10% of our top line. Clearly, when we say that we are able to grow 36%, 36.5% compared to the 2019, 2020 two years ago, without restating the travel retail, we are clearly booming on local markets. There can be a switch between travel retail and local markets, maybe partially, but it's not the same consumer. Travel retail, a little bit longer than I estimated, even if this doesn't affect at all the estimation of the year. Travel retail is very marginal at this stage, and we planned a year with a cautious configuration of travel retail performance. No issue on travel retail, a lack of speed at this stage compared to where it used to be, no issue in term of bottom line or gross margin because of the logistic tension. We operate as we can do, and we will do to respect our commitment. The next question comes from the line of Trevor Stirling from Bernstein. Please go ahead. Morning, Luca. Two questions from my side, please. First one, Luca, you mentioned at the start there are three factors behind it. There's spectacular growth in the quarter. There's an easy comp from last year. There's underlying demand, and then there's replenishment effect as well. I know it's really tough, is there any way of estimating the split between those three factors? The second question is really on supply and supply strategy and how you're going to keep up with this amazing level of demand. I think in the past, you talked about Cognac can support 4% volume growth. Is there a way of accelerating the expansion of the vineyards in Petite and Grande Champagne or has anything changed in terms of supply strategy? Thank you so much for your interesting question. The Q1 split, I am not able to make a very analytical disclosure. What I can say that more than half of that growth is linked to the strong underlying demand. As you remember, we said we estimated the Q4 to Q1 impact restocking, mastering assembly, and then restocking the Q1. We estimated that between EUR 40 million and EUR 50 million. We can say that we have done 2/3 of this amount in the Q1 and 1/3 remains, EUR 15 million to EUR 20 million for the Q2, logistic permitting all that. It means that more than the half of the growth is sound, clear there for the underlying new paradigm in the U.S. and not only the U.S. Supply in the future. Clearly, we cannot sustain the growth at that double the Cognac sales every quarter. It is impossible. We guided for the 2030 plan on a CAGR between 2% or 3% on Cognac volumes and 6%-8% in terms of the price mix. High single-digit progression, a compound average growth rate long term for the Cognac. Clearly, we cannot expect to continue to grow like that. How to face that? Two things. We have two things long term. Retain also sometimes, like we have done in terms of strategic management of the stock. Stock at central level and the local level before selling it too soon. Pricing power will be clearly reinforced, because if there is a strong underlying demand, if we are in a moment in which the demand exceed the offer, and the brands are well-supported, well-communicated, with a strong campaign to increase awareness, pricing power is even stronger. That's the reason why an A&P expense you see today increase in the P&L, you have to translate in terms of top line and bottom line tomorrow quite easily. What is at stake is the pertinence, is the relevance, is the content of the A&P, not the expense in our sense. Don't be afraid of expenses. Expenses are future operating profits. We don't plan to increase that, as far as I know, the plan in terms of coverage of the supply in terms of Cognac region, but we guided for EUR 80 million of working capital, all the supply increase every year, and we are committed to that. It's not easy because we are not the only one growing. There is a strong fight here that we are committed to feed our future without increasing our working capital of eaux-de-vie every year as 100, every year. Without changing the vision for the year. We are not searching the new land. We know that this land is good one, and we have our fair share in increasing share of buying. Thank you so much, Trevor. Hope it is clear. The next question comes from the line of Ed Mundy from Jefferies. Please go ahead. Morning, Luca. Morning, everyone. Three from me, all on the U.S. The first is, you talk about this new paradigm of structurally more buoyant consumption trends in the U.S. Is that a comment on cognac, or you think that's a comment for the overall spirits market? The second is, on the U.S., as consumption patterns normalize and people start going back out to the on-trade, have you seen any evidence of down-trading in the off-trade from perhaps, let's say, cognac back to brandy? The third on the U.S., looking back at Slide eight, may show your volume depletion trends as -15.9% for the last three months. I appreciate that's plus comps and supply constraints as you flagged. Have you seen volume depletion improve, as we've gone into Q2? Thank you so much. The new paradigm, we are clearly interested for the cognac, but it's not only cognac. It's all the up-trading categories. More single malt whisky than blend one, uplift in luxurious tequila more than the entry one. It's more that people like to please themselves. They are more interested in high quality and way also high-priced product. It belongs to cognac, but not at all. Clearly, looking in our market, cognac, we have to educate on cognac and Rémy Martin, what we consider it is to be our product superiority. By adopting sometimes also some different codes, some whisky code in terms of communication on the website and social networks, we have a switch in terms of base of consumption. Retaining them, once again, A&P is very important, not only in terms of global advertising, in terms of country, in states, and local advertising, also partnering with LibDib, leveraging the address book, Spirit Drinkers, increasing cognac visibility on e-commerce website. There is a wave more wide than cognac. We are clearly in. There is a momentum in which we need to profit to changing gear. Changing gear is also linked to increase of A&P expenses. In terms of the on-trade, we didn't witness a down-trading. We witness, compared with expectation, a reopening food insight that are overall faster than expected. Too early to be too enthusiastic because COVID is still there. The variants are there. As far as we speak, the on-trade reopens a little bit faster. 85% of the on-trade, as far as I speak, reopen in the U.S. compared to 70% expected. The spend per head is quite the opposite, increased by 20%. Personally, we did not witness any down-trading. We are witnessing an increase in expenses per capita. Again, I don't have a clear average basket per unit analysis to legitimate digging inside the range with this global statement. Increased on-trade presence, increased spending per capita. In EMEA, it's too early to say. As I said, more dynamic than expected. Summer should be a good one. China, I don't talk too much of China. China is the strongest sure value as far as we speak, both in off or trade without major disalignment between sell-in, sell-out. It is a machine gun which is performing as expected. Very, very good. The last words, off-trade. We were scared about the off-trade collapse reducing, not at all. Off-trade remain much above 2019, 2020 levels in many parts of the world. We might discuss that sometimes in the U.K., e-commerce could be for a month a bit lower than expected or compared to previous months. Overall, off-trade dynamics has not been lost. Very strong, very dynamic. To support that, we have to continue to invest. Q2 depletion, -15.9% on cognac. It is more linked, clearly sublimate, magnified, as I said, by the supply chain tension, because a strong part of the sell-in, it is or in the docks in this moment or in the wholesaler warehouse because they don't have the trucks to deliver to the retail. They will be reversed progressively in the Q2 and also maybe a part in October. Don't be scared about this selling and depletions figures. Consider to normalize all that, the performance of the industry by state, by country, and of ourselves, our major competitors over two-year basis. Over two-year basis, as we said in Italian, [Non-English content]. On two-year basis, everything is there because pre-COVID, no perturbation. It is a global year-to-date, all reason method compound analysis of what we are experiencing right now compared to the pre-COVID level. If you do that, you will see that in the short term, Rémy Martin U.S. is a little bit more penalized than our competitor because of the new paradigm. If you do it in two years, we are far better than the market, far better than our competitors. If you do that, stripping out 1738 with these victims of own success, it is clearly bingo. The next question comes from the line of Olivier Nicolai from Goldman Sachs. Please go ahead. Hi. Good morning, Luca. I've got three questions, please. You mentioned a new paradigm on cognac, but are we seeing the same as well for your Liqueurs & Spirits division? Looks like we hear a lot more about Bruichladdich, about The Botanist over the last few quarters. Your portfolio has improved significantly compared to eight years ago when you joined Rémy. How should we think about the sales growth algorithm for the division in the medium term? Is kind of a mid-single digit organic sales growth reasonable? Just to stay on this division, you've been very active in M&A. Which category or geographies exposure do you still think is missing for the division? Lastly on FX. The Euro has weakened quite a lot against the dollar since your last update in June. Yet your FX guidance isn't changed. I understand you probably don't want to update us every month on FX. If the Euro/dollar stays where it is at 1.18, could Rémy benefit from it this year? Can we expect an update at H1 or is everything locked for this year? Thank you. Thank you. Thank you for the question. The new paradigm for Liqueurs & Spirits. That is a very interesting question because the top of mind answer I have that is installing the paradigm more than new paradigm, because we have the necessity to prove that we are successful in the division, that historically has good promises, but the results were not what we expected for many years. Today with the programs, what we are doing, we think we are much more optimistic and it is less a price game, more a volume game. We have a lot of tools of the positive weapon, not only Cointreau, but the whiskies. It is both something that will be discovered also by ourselves in terms of the future quarter to try to set also the vision, the clear one, for the future. We have strong expectations. The result are clearly better than expected in the short term in some part of the world that are very interesting, like whiskies for China, some European countries, Cointreau out of the U.S. as well. A new paradigm in the U.S. may be only for the fact that we are able to have a size that was not that big to allow ourselves to enter a new game like Cointreau advertising the Super Bowl or playing in the A league. The new paradigm, I think we will be more specific on that in the next coming quarters. Clearly, there's a lot of momentum of positive energy there. We discover quarter by quarter where the limit are. We are very positive on Liqueurs & Spirits on some brands, and this is the very good news. In terms of M&A for Liqueurs & Spirits, as you know, the strategic roadmap for 2030 is built on organic growth. First of all, our best acquisition is to be able to beat the market for every brand we have. We have a lot to do about that, a lot to do in terms of advertising expression, a lot to do in terms of net revenue management, a lot to do in terms of volume optimization, range, channel. We have a lot to do in terms of global mechanics of the existing brands. At this stage, we do not target a specific category for M&A. We are clearly looking a lot of dossier, a lot of topics every year with Eric Vallat, with the board of directors. There is nothing cheap and relevant at this stage because also with the need to increase profitability in the long term, this acquisition should be sizable and also a little bit accretive, I don't say from day one, but maybe for year three and four without waiting too many years. There is nothing very interesting for sale as far as I speak, or at least for our understanding, our knowledge on the market. A lot of intellectual curiosity, but nothing very concrete at this stage. I repeat, the clear priority, also in terms of cash allocation, is to feed the existing growth, also in the acquisition period. FX. FX, we are not updating because at this stage, you remember, we cover more than 80%-85%, if I'm not mistaken, of our needs for this year. We have a guaranteed rate at a little bit more than 1.20. We have clearly 60% of options, but options are very good if you are deviating in terms of spot in a very bad or very good. If you are switching plus or minus EUR 0.02 or EUR 0.03, you are covered, you are guiding with certainty because you have the visibility, but you are not gaining so much. If you want, what we can gain is on the 15%, which is not covered, the difference between 1.18 to the spot and 1.20, if you stay like that for the remaining part of the year. In terms of bottom line Forex, we stick to what we said, and we will be more precise at the end of the Q2, or more precisely in November with the half year result. With Celia and Laurence, we update all the figures. In terms of currency translation, the top line, if you consider to remain in terms of the spot, maybe the 2025 or year 11 will be a little better. We don't know. As you know, we don't cover top line, we cover all the net impact. We cover the bottom line. So far, it is not a matter of cautiousness, it's a matter that our policy allows ourselves to cover far in advance the needs for the next year. We are already covering 2022, 2023. In 2022, 2023, with the cost of all what we have to consider, the time and the cost of option, we are already committing sometimes between 1.20, 1.21. This is the price to pay when you have initials. You want to have the visibility on the future of your Forex? You have to cover in advance. Otherwise, you are exposed to the plus and minus the volatility of the market. Once again, I will be very precise end of November with Celia and Rémy on our estimation for the rest of the year. The next question comes from the line of Richard Withagen from Kepler Cheuvreux. Please go ahead. Yeah. Thank you. Good morning, all. I have two questions, please, Luca. First of all, on e-commerce in the U.S., can you say how wide your brands are distributed? Are you on all the platforms or are you putting bigger efforts behind some specific platforms, and why would you do that? The second question is on, as you step up the investments in the business, what are your plans on opening more boutiques and where especially are you targeting to open more boutiques? Thank you for your question. I'm sure you'll be frustrated, but I cannot answer to your question in a very specific way, because I deliver to the competition, everybody's listening, the need or the heart of our future strategy in a specific way. I will answer in more global, generic way. In e-commerce, before pandemic in the U.S., we were at 4%, now between 8% and 10%. We use a lot of platform according to the legislation, which is, we cannot allow ourselves to be free as we can be in other state. We leverage it, but we're still passing through the classical wholesale mechanism. It is an opportunity in terms of new customers, an opportunity also in terms of profitability. Because even if, in terms of channel management, today is not factored as a specific route to market, the more and more we are beating with this result, a new stock equation in term of e-commerce in the U.S. demonstrating that the rotation, the return on employed capital of the whole chain, not only ours, of the wholesaler, is moving faster in terms of the sell-in, sell-out, and remaining stock will be able to differentiate the trade allowances, or at least to grab additional services from the wholesaler for the new business that is booming and which the merit belong to both of us. Everybody is to profit. An increase in footprint overall, but I don't disclose the specific platform and why we are on that. In terms of boutiques, we have five today in China. We are intending to increase the direct to consumer, and boutiques is one of the tool, together with other, will be more in the future, but I don't disclose the calendar where, because it's too sensitive. Sorry. Sorry if it is not funny for you. I understand it frustrating, but please understand us, it's clear important for our strategy. There are no further questions in the queue. I hand call back to your host for some closing remarks. Thank you so much for being with us today, a very strong quarter. The second one will be another quarter of growth, of double-digit growth. We are continuing to perform as we expected. I repeat, a strong year with a strong H1, less stronger, but it's still positive, H2, to drive Rémy Cointreau to a year of mid-teens operating profit growth and a muted operating profit evolution, meaning top line and bottom line organically driving at the same speed. Thank you so much. I'll speak to you in October. Have a good summer. Stay safe. Enjoy life. Thank you for joining today's call. You may now disconnect your lines.