FY21 Q3 Sales

EXCELLENT Q3 AT +19%, MARKING RETURN TO SALES GROWTH IN 9M FY21 AT +2% (REPORTED SALES: -4%)

INTERIM DIVIDEND OF €1.33 PER SHARE TO BE PAID ON 9 JULY 2021

FY21 GUIDANCE:
ORGANIC GROWTH IN PROFIT FROM RECURRING OPERATIONS OF C. +10%

9 Month Sales

Sales for the first 9 months of FY21 totalled €6,941m, with an organic growth of +1.7%:

• Dynamism of Must-win domestic markets, with USA continuing to grow mid-singledigits, China at +34% in 9M and India back to double-digit growth in Q3
• Europe (1) continuing to display strong resilience, thanks in particular to Scotch and Specialty Brands, despite Covid-related restrictions
• Travel Retail starting to lap easier comparison base, but still very subdued, with limited passenger traffic

By category:

• Strategic International Brands +1% returning to growth driven by Martell, Malibu, Jameson and The Glenlivet. Absolut and blended Scotch still in decline, impacted by Travel Retail exposure
• Strategic Local Brands now stable, thanks to double-digit growth of Kahlua, Passport and Ramazzotti
• Specialty Brands +22%, with continued strong dynamism of Lillet, Malfy and Aberlour in Western Europe, and Tequila and American whiskey in USA
• Strategic Wines +2%, in good growth, particularly thanks to Off-trade dynamism in UK and Canada.

Reported 9M Sales declined -3.7% with an unfavourable FX impact linked mainly to Euro appreciation vs. USD and Emerging market currencies. For full-year FY21, a significant FX impact on Profit from Recurring Operations of c. -€250m is expected (2).

Sales for the third quarter of FY21 totalled €1,955m, with an organic growth of +19.1% and reported growth of +12.6%. Dividend An interim dividend of €1.33 per share will be detached on 7 July 2021 and paid on 9 July 2021. The final dividend will be subject to the AGM decision on 10 November 2021.

Dividend

An interim dividend of €1.33 per share will be detached on 7 July 2021 and paid on 9 July 2021. The final dividend will be subject to the AGM decision on 10 November 2021.

Alexandre Ricard, Chairman and Chief Executive Officer, stated,
“Our Q3 was excellent, marking a return to organic Sales growth for 9M FY21. This confirms the strength of our business, with strong dynamism of our domestic Must-win markets and good resilience throughout.
In a still uncertain and volatile global context, with the current information available on the pandemic, we will continue to implement our strategy while actively managing resources, in particular strongly reinvesting where efficient. We expect our Sales to accelerate in Q4 and accordingly are providing guidance of an organic growth in Profit from Recurring Operations for full-year FY21 of c. +10%.”

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.

(1) Excluding Travel Retail
(2) Based on average FX rates projected at 14 April 2021, particularly a EUR/USD rate of 1.19

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.