Regulatory News:
Pernod Ricard (Paris:RI):
Press release - Paris, 18 October 2018
VERY STRONG Q1 SALES, FAVOURED BY TECHNICAL
IMPACTSGROWTH TO MODERATE IN FULL-YEAR FY19
ORGANIC SALES GROWTH: +10.4%(REPORTED
GROWTH: +7.2%)
FY19 GUIDANCE1
CONFIRMED:ORGANIC GROWTH IN PRO2 BETWEEN
+5% AND +7%
Sales for the first quarter of FY18 totalled € 2,387 million,
with organic growth of +10.4%:
- modest growth in the Americas:
+2%
- slower Q1 in USA, due to shipment
phasing, although underlying trend remains broadly in line with
market
- strong performance of Travel
Retail
- very dynamic Asia-RoW: +23%, boosted
by technical impacts
- strong growth across all categories in
China, further enhanced by advance shipments
- particularly good Q1 in India thanks to
better market conditions and value strategy, reinforced by
favourable basis of comparison
- strong performance in Travel Retail
Asia and Africa Middle East, but ongoing difficulties in Korea
- mixed performance in Europe: +1%
- strong Sales in Eastern Europe
- France and Spain in decline, with
challenging markets.
Reported growth was +7.2% due to an unfavourable FX
impact, mainly from Indian Rupee and Turkish Lira. For full-year
FY19, a slightly negative FX impact is
expected3.
Growth was driven by:
- Strategic International Brands
broad-based acceleration to +12%, with improved growth from
Martell and Scotch, continued strong performance from Jameson but
Absolut in decline due to phasing in USA
- Strategic Local Brands:
+15%, driven by the acceleration of Seagram’s Indian
Whiskies, Ararat and Passport and continued strong growth of Olmeca
/ Altos
- Innovation delivering an incremental
+2% to overall Group Sales
- positive impact of price/mix:
+2.9%.
H1 will benefit from the earlier Chinese New Year4. Growth
will then moderate in full-year FY19, in particular due to
Martell coming back in line with its medium-term high-single-digit
volume growth target.
The Group will continue to implement its strategic
roadmap, in particular focusing on digital, innovation and
operational excellence. As part of its active portfolio
management, the Group may in the short or medium-term, make
value-enhancing bolt-on acquisitions, as well as dispose of
non-strategic brands.
1 Guidance communicated 29 August 20182 PRO = Profit from
Recurring Operations3 Based on average FX rates projected at 12
October 2018, particularly a EUR/USD rate of 1.164 5 February 2019
vs. 16 February 2018
As part of this communication, Alexandre Ricard, Chairman
and Chief Executive Officer, stated,
“We have had a particularly good start to the year, as expected.
In an uncertain geopolitical and monetary environment, we confirm
our FY19 guidance of organic growth in Profit from Recurring
Operations of between +5% and +7%.”
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.
A detailed presentation of Sales for the first quarter of FY19
can be downloaded from our website: www.pernod-ricard.com
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.
Profit from recurring
operations
Profit from recurring operations corresponds to the operating
profit excluding other non-current operating income and
expenses.
About Pernod Ricard
Pernod Ricard is the world’s n°2 in wines and spirits with
consolidated Sales of €8,987m in FY18. Created in 1975 by the
merger of Ricard and Pernod, the Group has undergone sustained
development, based on both organic growth and acquisitions: Seagram
(2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod
Ricard holds one of the most prestigious brand portfolios in the
sector: 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
employs a workforce of approximately 18,900 people and operates
through a decentralised organisation, with 6 “Brand Companies” and
86 “Market Companies” established in each key market. Pernod Ricard
is strongly committed to a sustainable development policy and
encourages responsible consumption. Pernod Ricard’s strategy and
ambition are based on 3 key values that guide its expansion:
entrepreneurial spirit, mutual trust and a strong sense of
ethics.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code:
FR0000120693) and is part of the CAC 40 index.
APPENDICES
Q1 FY19 Sales by Region
Net Sales
(€ millions)
Q1 FY18 Q1 FY19 Change Organic Growth
Group Structure Forex impact
Americas 639 28.7% 636 26.6% (3) 0% 15 2% (3)
0% (15) -2% Asia / Rest of World 916 41.1% 1,084 45.4% 169 18% 208
23% (0) 0% (39) -4% Europe 671 30.2% 667 27.9% (4)
-1% 7 1% (4) -1% (8) -1%
World
2,226 100.0% 2,387 100.0%
161 7% 230 10% (7)
0% (62) -3%
Notes:FY18 has been adjusted to reflect the IFRS15 update as per
press release 25th September 2018 “Application of IFRS 15 norm”Bulk
Spirits are allocated by Region according to the Regions’ weight in
the Group
Foreign exchange impact on Q1 FY19 Sales
Forex impact Q1 FY19
(€ millions)
Average rates evolution On Net Sales
Q1 FY18 Q1 FY19 %
US dollar USD 1.17 1.16 -1.0% 6 Pound sterling
GBP 0.90 0.89 -0.6% 1 Chinese yuan CNY 7.83 7.92 1.1% (3) Indian
rupee INR 75.51 81.65 8.1% (22) Turkish Lira TRL 4.13 6.60 60.0%
(10) Other (33)
Total
(62)
Upcoming communications
DATE1
EVENT Wednesday 21 November 2018
Annual General Meeting
Thursday 13 December 2018
North America conference call
Thursday 7 February 2019
H1 FY19 Sales & Results
Tuesday 19 March 2019
EMEA & LATAM conference
call
Thursday 18 April 2019
Q3 FY19 Sales
1 The above dates are indicative and are liable to change
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181017005820/en/
Pernod RicardJulia Massies, +33 (0)1 41 00 41 07VP, Investor
Relations & Internal AuditorAdam Ramjean, +33 (0)1 41 00 41
59Investor Relations ManagerorFabien Darrigues, +33 (0)1 41 00 44
86External Communications DirectororAlison Donohoe, +33 (0)1 41 00
44 63Press Relations ManagerorEmmanuel Vouin, +33 (0)1 41 00 44
04Press Relations Manager
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