Group Net Profit: € 464 million (+ 12.3%) W & S Operating Profit: € 737 million (+ 15.5% at a constant exchange) Continued rapid debt reduction Dividends up 8.9%
The Board of Directors of Pernod Ricard, meeting under the chairmanship of Patrick RICARD on 17 March 2004, approved the 2003 fiscal year accounts.
Wine & Spirits Sales and Profit
Wine & Spirits sales amounted to € 3.4 billion, reflecting a significant negative currency effect (- 8.3%) and excellent organic growth (+ 8.1%), which arose from good results achieved by most brands, both global and local, throughout the world.
Wine & Spirits operating profit improved to € 737 million, despite a significant negative currency effect (€ 83 million), increasing the operating profit margin to 21.5% from 20.8% for 2002. On a constant exchange rate basis, operating profit improved by 15.5%. This increase was achieved thanks to an improvement in the gross profit margin and good control of commercial costs and overheads, while maintaining advertising and promotional costs at a high level.
Consolidated Sales and Profit
Consolidated sales, excluding duties and taxes, amounted to € 3.5 billion (5.5% organic growth), with consolidated operating profit of € 739 million. Non-strategic businesses operating profit decreased to € 2 million from € 40 million, reflecting the refocusing on the Group's core Wine and Spirits business.
Net finance costs improved significantly to € 102 million. This is notably due to a major 38% decrease in interest, reflecting the continuation of a very rapid reduction of financial debt, which declined by € 682 million during 2003, a drop in interest rates, decreasing to 3.7% from 4.4%, as well as a favourable currency effect.
Net exceptional income reached to € 60 million from € 10 million in 2002, primarily due to the disposal of Société Générale shares.
As a result, Group Net Profit improved 12.3% to € 464 million from € 413 million in 2002.
Dividends up 8.9%
The Board of Directors of Pernod Ricard will propose to the Annual Shareholders Meeting of 17 May 2004 a cash dividend per share of € 1.96, up 8.9% over the previous year. This dividend per share is paid in two instalments: the first instalment (€ 0.90 per share) was distributed on 14 January 2004, the second instalment (€ 1.06) to be distributed on 25 May 2004.
Commenting on these results, Patrick Ricard, Chairman and Chief Executive Officer said: "I am very satisfied with the Group's 2003 fiscal year results, and particularly the strong growth in our Wine & Spirits business profitability". He added :"Our portfolio of premium brands and our presence in high growth markets support our confident view of the future." The Group anticipates that therefore it will enjoy during 2004, a growth in operating profit on a constant exchange rate basis.
