Published On 10/18/2018

Q1 Sales - FY19

Very strong Q1 Sales, favoured by technical impacts

growth to moderate in full-year FY19


organic sales growth: +10.4%

(reported growth: +7.2%) 


FY19 guidance[1] confirmed:
Organic growth in PRO[2] 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 expected[3].

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 Year[4].  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.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, stated,  

“We have had a particularly good start to the year, as expectedIn an uncertain geopolitical and monetary environment, we confirm our FY19 guidance of organic growth in Profit from Recurring Operations of between +5% and +7%.


[1] Guidance communicated 29 August 2018

[2] PRO = Profit from Recurring Operations

[3] Based on average FX rates projected at 12 October 2018, particularly a EUR/USD rate of 1.16

[4] 5 February 2019 vs. 16 February 2018


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 here


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.



Q1 FY19 Sales by Region 



FY18 has been adjusted to reflect the IFRS15 update as per press release 25th September 2018 “Application of IRS 15 norm”

Bulk Spirits are allocated by Region according to the Regions’ weight in the Group

Foreign exchange impact on Q1 FY19 Sales





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