Published On 08/28/2018

2017/18 Full-year Sales and Results



Sales for FY18 totalled €8,987m
.  Organic Sales growth accelerated to +6.0% vs. +3.6% in FY17, thanks to consistent strategy implementation.  Reported Sales were down -0.3%.

Sales were very strong, with broad-based growth coming from a wide spectrum of markets…
•    Americas: continued dynamism +6%, with USA now growing broadly in line with market and acceleration in Mexico and Brazil
•    Asia-Rest of World: acceleration +9%, thanks to return to strong growth in China and India
•    Europe: modest growth +2%, with good momentum in Eastern Europe, Germany and UK but difficulties in France and Spain
•    Travel Retail in good growth, across all regions, thanks in part to new organisation, leading to value market share gains… and brands:
•    Strategic International Brands’ acceleration +7% vs. +4% in FY17: 11 out of 13 in growth, 6 improving vs. FY17    
•    Very strong performance of Martell (+14%) and Jameson (+14%)
•    improving trends for overall Scotch portfolio (+3% vs. stable in FY17) and return to growth of Chivas (+5%)
•    Absolut +2%, thanks to success outside of USA (+6%) although USA still in decline
•    significant improvement of Seagram’s Indian whiskies +13% vs. +3% in FY17
•    Innovation contributing significantly to topline growth.
Q4 Sales were €1,927m with +5% in organic growth (-2% reported), broadly consistent with underlying trends in the first 9 months of the year.


FY18 PRO was €2,358m, with organic growth of +6.3% and -1.5% reported. The PRO margin was up +14bps organically but down -34bps on a reported basis due to adverse FX (-€180m.)

Organic PRO  growth was in line with the revised annual guidance of c. +6%.  It was driven by:
•    Gross margin +6%, a +15bps margin improvement vs. FY17 on an organic basis, thanks to:
•    Pricing improving
•    Operational excellence savings limiting impact of cost of goods’ increases (in particular Agave cost and GST in India)
•    strong growth from Martell and Jameson but negative mix from growth in Seagram’s Indian Whiskies and decline of Ricard
•    A&P: +7% to prepare for future growth, remaining broadly stable at c. 19% of Sales
•    Tight management of Structure costs: +5% (+4% excluding Other income and expense), with targeted investment in Emerging markets and growth relays.

The FY18 corporate income tax rate on recurring items was c. 25%, in line with FY17. The expected rate for FY19 is c. 26%.

Group share of Net PRO1 was €1,511m, +2% reported vs. FY17.

Group share of Net profit was €1,577m, +13% reported vs. FY17, thanks in particular to a reduction in financial expenses.


Free Cash Flow was very strong, increasing to €1,433m, +10% vs. FY17, resulting in a Net debt decrease of -€889m to €6,962m.

The average cost of debt reduced to 3.5% vs. 3.8% in FY17.  The expected for FY19 is c. 3.9%.

The Net Debt/EBITDA ratio at average rates was 2.6 at 30 June 2018, significantly down from 3.0 at 30 June 2017.


A dividend of €2.36 is proposed for the Annual General Meeting of 21 November 2018, up +17% from FY17, corresponding to an increase in pay-out ratio to 41%, reflecting the Group’s policy of gradually increasing cash distribution from approximately one-third of Group Net Profit from Recurring Operations to c. 50% by FY20.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, declared, “FY18 was a very strong year. Consistent strategic implementation has enabled us to deliver a significant improvement in business performance while investing for the future. Our Sales have accelerated and diversified, and our margins improved. In FY19, in a still uncertain geopolitical and monetary environment, we will continue consistently implementing our strategy.  Our guidance for FY19 is organic growth in Profit from Recurring Operations between +5% and +7%.”

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About Pernod Ricard

Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of € 8, 987 million in FY18. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: 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, Mumm and Perrier- Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,900 people and operates through a decentralised organisation, with 6 “Brand Companies” and 86 “Market Companies” established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard’s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics.  Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.

Contacts Pernod Ricard

Julia MASSIES VP, Financial Communication & Investor Relations Tel: +33 (0)1 41 00 41 07

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Emmanuel VOUIN Press Relations Manager Tel: +33 (0)1 41 00 44 04