H1 FY22 Sales and Results

Press Release 10/02/2022

Record Breaking H1 FY22 Sales and PRO1 at c. €6bn and c. €2bn
+17% organic Sales Growth (+20% reported) and +13% vs. pre-covid2
+22% organic growth in PRO1 (+25% reported) and +20% vs. pre-covid2


Sales for H1 FY22 totalled €5,959m, with an organic growth of +17% (+20% reported), with a favourable FX impact linked mainly to strength of US Dollar and Chinese Yuan vs. Euro.

H1 FY22 Sales grew in all regions:

  • Americas +14%: very dynamic growth in the region, notably USA, Brazil and Travel Retail
  • Asia-RoW +16%: excellent growth driven by China, India and Turkey
  • Europe +21%: outstanding growth across the region, with rebound in Spain, France, Travel Retail and continued dynamism in Eastern Europe.

Strategic International Brands and Specialty portfolio are driving strong price/mix with:

  • Strategic International Brands +19%: broad-based rebound with all brands growing, notably Jameson, Martell, Ballantine’s, Absolut and Chivas Regal, all double-digit
  • Strategic Local Brands +14%: driven by recovery of Seagram’s Indian whiskies
  • Specialty Brands +21%: continued very dynamic momentum of American whiskeys, Malfy, Monkey 47, Redbreast, Lillet and agave portfolio
  • Strategic Wines -6%: soft first half, due in particular to New Zealand lower harvest.

Price/mix on Strategic Brands was strong at +6%.
Innovations are in strong growth +43%.

Q2 Sales were €3,242m, with +14% organic growth, slowing vs. Q1 Organic Sales (+20%), cycling higher comparison basis in some markets.


H1 FY22 PRO was €1,998m, an organic growth of +22%, with a strong organic operating margin improvement of +147bps:

  • Gross margin expanding +39bps:
    • Strong pricing across regions and operational excellence savings
    • more than compensating inflation in Costs of Goods, notably from logistics and commodities
  • Phasing in A&P with acceleration expected in H2 with ratio of c. 16% for FY22
  • Structure costs reinforcement to support Sales growth and transformation momentum
  • Positive FX impact on PRO +€39m with US Dollar and Chinese Yuan appreciation vs. Euro offsetting significant Turkish Lira depreciation.

Group share of Net PRO was €1,438m, +32% reported vs. H1 FY21 and the Group share of Net Profit was €1,390m, +44% reported, reflecting increase in Profit from Recurring Operations, lower non-recurring operating items, lower financial expenses and increase in Corporate Income Tax.

Excellent Earnings Per Share +33%, reflecting growth in PRO and positive impact of FY22 Share buy-back.

1PRO: Profit from Recurring Operations
2 vs. H1 FY20 at constant FX

Free cash flow and debt

Very strong H1 cash conversion with Recurring Free Cash Flow at €1,383m, +39%. Cash generation supported by strong growth in Profit from Recurring Operations.  Seasonal Working Capital requirements in line with business growth.

The average Cost of debt stood at 2.2% vs. 3.2% in H1 FY21 following successful bond refinancings.

Net debt increased by €471m vs. 30 June 2021 to €7,923m. The Net Debt/EBITDA ratio at average rate  was 2.4x at 31 December 2021.


In an ongoing volatile environment with potential disruptions of Covid-19, Pernod Ricard expects for FY22:

Continued On-Trade rebound, Off-trade resilience and Travel Retail gradual recovery driving strong diversified Sales momentum across regions

Dynamic topline driving operating margin expansion albeit moderating vs. H1, with increased investments to fuel growth momentum
Continued implementation of Transform & Accelerate, including digital transformation to develop Pernod Ricard into a Conviviality Platform

Strong cash generation while upweighting investments behind key Capex and Strategic inventories

Acceleration of share buy-back programme with additional c. €250m (total of c. €750m for FY22)

The execution of our Transform & Accelerate strategy is delivering an excellent and broad-based performance in the first half, with brand share gains in most countries and with all our Must-Win Markets showing very strong growth. I take the opportunity to praise the engagement and performance of our teams throughout the world, who have relentlessly accomplished outstanding work, in an environment still largely disrupted on many fronts by the Covid crisis. Despite the ongoing volatile environment, we expect for FY22 strong Sales growth across regions, with continued On-Trade rebound, Off-trade resilience and a gradual Travel Retail recovery. We will increase investments to fuel growth momentum.

We remain focused on executing our strategy, progressing on our Sustainability and Responsibility journey and accelerating our digital transformation. A successful mix of robust fundamentals, the dedication of our teams and our portfolio of brands, has yielded a very strong set of results and seen us through this crisis, emerging even stronger.

Alexandre Ricard
Chairman and Chief Executive Officer

1Based on average EUR/USD rate: 1.18 in calendar year 2021

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 H1 FY22 Sales and Results can be downloaded from our website: www.pernod-ricard.com

Limited review procedures have been carried out by the Statutory Auditors on the condensed half-yearly consolidated financial statements. The Statutory Auditors’ Review Report on the Half-yearly Financial Information is being issued.

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.


Press release

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About pernod ricard

Pernod Ricard is a worldwide leader in the spirits and wine industry, blending traditional craftsmanship, state-of-the-art brand development, and global distribution technologies. Our prestigious portfolio of premium to luxury brands includes 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 and Mumm and Perrier-Jouët champagnes. Our mission is to ensure the long-term growth of our brands with full respect for people and the environment, while empowering our employees around the world to be ambassadors of our purposeful, inclusive and responsible culture of authentic conviviality. Pernod Ricard’s consolidated sales amounted to € 12,137 million in fiscal year FY23. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code:FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices

Contacts Pernod Ricard

Florence Tresarrieu
Global SVP Investors Relations and Treasury
Tel: +33 (0) 1 70 93 17 03
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Tel: +33 (0) 1 70 93 17 13
Emmanuel Vouin
Head of External Engagement
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