First Quarter 2017/18 Sales

Very good Q1 Sales, with growth accelerating and diversifying

organic sales growth: +5.7%

(reported growth: +2.0%)

FY18 guidance[1] confirmed:
Organic growth in PRO[2] between +3% and +5%

Sales for the first quarter of FY18 totalled ' 2,292 million, with organic growth of +5.7%:

• Continued dynamism in the Americas: +6%, with good performance in USA and acceleration of Travel Retail throughout the continent
• Significant acceleration in Asia-RoW: +7% vs. stable in Q1 FY17, with a strong Q1 in China and a rebound in Travel Retail and Africa Middle East
• Continued good overall growth in Europe: +3%, thanks to very strong Sales in Eastern Europe and a modest increase in Western Europe, with strong dynamism in Germany and UK but a decline in France and slow start in Spain
• Acceleration coming from Emerging markets (+10%)
• Performance partly enhanced by favourable basis of comparison in Q1 FY17 (Global Travel Retail, Africa Middle East')

Reported growth was +2.0% due to the unfavourable FX impact over the period.
Group topline improvement was primarily driven by the Strategic International Brands (+8%) with strong broad-based growth, in particular from Martell, Absolut, Jameson, Ballantine's, Chivas and Malibu.
The Strategic Local Brands grew +2% with Seagram's Indian whiskies growth still subdued due to the highway ban but strong growth in tequila and gin.
Strategic Wines also had a very strong quarter at +8%, thanks mainly to Campo Viejo.
Innovation delivered an incremental +2% to overall Group Sales.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, stated,
'We have had a very good start to the year, with our growth accelerating and diversifying in terms of both markets and brands. This is again testimony to the success of the strategic direction we adopted 2 years ago.
In an environment that remains uncertain, we confirm our FY18 guidance of organic growth in Profit from Recurring Operations of between +3% and +5%. We will continue to implement our roadmap, in particular focusing on digital, innovation and operational excellence.'

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 FY18 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.

For Appendices, please download the press release