PARIS--(BUSINESS WIRE)--Regulatory News:
Press release - Paris, 18 April 2019
Pernod Ricard (Paris:RI)
Sales for the first 9 months of FY19 totalled € 7,188 million, with organic growth of +6.3%, driven by the Emerging markets (+15%):
- Americas +3%: good performance with USA broadly in line with market; start of USA wholesaler inventory optimisation in Q3
- Asia-RoW +12%: very strong performance driven by dynamic growth in China and India
- Europe +1%: very good Sales in Eastern Europe and contrasted performance in Western Europe.
Reported growth was +4.9% due to an unfavourable FX impact. For full-year FY19, a positive FX impact of c. +€20m is expected3.
Sales for the third quarter of FY19 totalled € 2,003 million, including organic growth of +2.5% and reported growth of +4.5%:
- Americas +2%: improving performance in Latin America and shipments reflecting start of wholesaler inventory optimisation in USA
- Asia-RoW +3%: growth in line with expectations, with sustainable growth management of Martell following earlier Chinese New Year1 and route-to-market change in Korea
- Europe +2%: improvement driven by very strong performance in Russia and UK, despite commercial dispute in France and Germany
As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, stated,
“Growth was very strong and diversified in the first 9 months of FY19, responding to our long-term investment strategy.
For full year FY19, in an environment that remains uncertain, we aim to continue dynamic and diversified growth across our regions and brands.
We expect organic growth in Profit from Recurring Operations of c.+8%. We will continue to roll out our strategic plan “Transform & Accelerate”, focused on investing for sustainable and profitable long-term growth.”
1 CNY: Chinese New Year on 5 February 2019 vs. 16 February 2018
2 Guidance communicated to market on 29 August 2018 of organic growth in Profit from Recurring Operations of +5% to +7%, revised on 7 February 2019 to between +6% and +8%
3 Based on average FX rates projected at 11 April 2019, particularly a EUR/USD rate of 1.14
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 third 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 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 us 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 19,000 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.
|Q3 FY19 Sales by Region|
|H1 FY18||H1 FY19||Change||Organic Growth||Group Structure||Forex impact|
|Asia / Rest of the World||2,015||40.8%||2,266||43.7%||251||12%||323||16%||(0)||0%||(73)||-4%|
|Q3 FY18||Q3 FY19||Change||Organic Growth||Group Structure||Forex impact|
|Asia / Rest of the World||878||45.8%||922||46.0%||44||5%||27||3%||(0)||0%||17||2%|
|9M FY18||9M FY19||Change||Organic Growth||Group Structure||Forex impact|
|Asia / Rest of the World||2,893||42.2%||3,188||44.3%||295||10%||350||12%||(0)||0%||(56)||-2%|
FY18 has been adjusted to reflect the IFRS15 update as per press
release 25th September 2018 “Application of
Bulk Spirits are allocated by Region according to the Regions’ weight in the Group
Foreign exchange impact on YTD FY19 Sales
Forex impact 9M FY19
|Average rates evolution||
|Tuesday 4 June 2019||Asia Conference Call|
|Tuesday 25 June 2019||
Marketing in the digital age
|Thursday 29 August 2019||FY19 Full-year Sales & Results|
|Wednesday 16 October 2019||Q1 FY20 Sales|
|Friday 8 November 2019||Annual General Meeting|
|1.The above dates are indicative and are liable to change|