Pernod Ricard: FY21 Guidance Updated1 to Reflect Greater Than Expected Bus. Dynamism: Profit From Recurring Operations Organ...
23 Giugno 2021 - 7:30AM
Business Wire
Regulatory News:
Following an excellent Q3, marking the return to organic Sales
growth in 9M FY21, Pernod Ricard (Paris:RI) had shared, on April
22nd 2021, its guidance of organic growth in Profit from Recurring
Operations for FY21 of c. +10% with, in particular, the following
assumptions for the rest of fiscal year:
- Sales acceleration, thanks to continued business recovery, with
On-trade gradually reopening but Travel Retail still very
subdued
- Dynamic resource management, with strong reinvestment where
efficient (A&P expected at c. 16% ratio for FY21)
- Organic operating leverage thanks to dynamic top-line and
Structure cost discipline.
The pace of recovery is proving stronger than anticipated. The
Off-trade continues to be resilient while On-trade demand is
accelerating as restrictions are progressively lifted.
Resource management remains dynamic, with strong reinvestment to
capture current and future growth opportunities, including A&P
at c. 16% of Sales.
Thanks to this dynamism, Pernod Ricard now expects an organic
growth in Profit from Recurring Operations for FY21 of c. +16%2. As
a result, FY21 PRO should, in organic terms, be broadly in line
with that of FY19, albeit with Sales still impacted by restrictions
in the On-trade and Travel Retail, and Structure costs not yet at
their normative levels.
All growth data specified in this press release refers to
organic growth (at constant FX and Group structure), unless
otherwise stated. Data may be subject to rounding.
Definitions and reconciliation of non-IFRS measures to IFRS
measures
Pernod Ricard’s management process is based on the following
non-IFRS measures which are chosen for planning and reporting. The
Group’s management believes these measures provide valuable
additional information for users of the financial statements in
understanding the Group’s performance. These non-IFRS measures
should be considered as complementary to the comparable IFRS
measures and reported movements therein.
Organic growth
Organic growth is calculated after excluding the impacts of
exchange rate movements and acquisitions and disposals.
Exchange rates impact is calculated by translating the current
year results at the prior year’s exchange rates.
For acquisitions in the current year, the post-acquisition
results are excluded from the organic movement calculations. For
acquisitions in the prior year, post-acquisition results are
included in the prior year but are included in the organic movement
calculation from the anniversary of the acquisition date in the
current year.
Where a business, brand, brand distribution right or agency
agreement was disposed of, or terminated, in the prior year, the
Group, in the organic movement calculations, excludes the results
for that business from the prior year. For disposals or
terminations in the current year, the Group excludes the results
for that business from the prior year from the date of the disposal
or termination.
This measure enables to focus on the performance of the business
which is common to both years and which represents those measures
that local managers are most directly able to influence.
About Pernod Ricard
Pernod Ricard is the No.2 worldwide producer of wines and
spirits with consolidated sales of €8,448 million in FY20. Created
in 1975 by the merger of Ricard and Pernod, the Group has developed
through organic growth and acquisitions: Seagram (2001), Allied
Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns
16 of the Top 100 Spirits Brands, holds one of the most prestigious
and comprehensive brand portfolios in the industry, including:
Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal
Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey,
Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur,
Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott
Estate, Campo Viejo, and Kenwood wines. Pernod Ricard’s brands are
distributed across 160+ markets and by its own salesforce in 73
markets. The Group’s decentralised organisation empowers its 19,000
employees to be true on-the-ground ambassadors of its vision of
“Créateurs de Convivialité.” As reaffirmed by the Group’s strategic
plan, “Transform and Accelerate,” deployed in 2018, Pernod Ricard’s
strategy focuses on investing in long-term, profitable growth for
all stakeholders. The Group remains true to its three founding
values: entrepreneurial spirit, mutual trust, and a strong sense of
ethics, as illustrated by the 2030 Sustainability and
Responsibility roadmap supporting the United Nations Sustainable
Development Goals (SDGs), “Good times from a good place.” In
recognition of Pernod Ricard’s strong commitment to sustainable
development and responsible consumption, it has received a Gold
rating from Ecovadis. Pernod Ricard is also a United Nation’s
Global Compact LEAD company.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code:
FR0000120693) and is part of the CAC 40 and Eurostoxx 50
indices.
1 Guidance given to market on 22 April 2021 at the 9M Sales
release of organic growth in Profit from Recurring Operations of c.
+10%.
2 A negative FX impact of c. -€270m on Profit from Recurring
Operations is expected for FY21.
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version on businesswire.com: https://www.businesswire.com/news/home/20210622006093/en/
Julia Massies / VP, Financial Communications & Investor
Relations +33 (0) 1 70 93 17 03 Charly Montet / Investor Relations
Manager +33 (0) 1 70 93 17 13 Emmanuel Vouin / Head of External
Engagement +33 (0) 1 70 93 16 34
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