Published On 10/20/2016

First Quarter 2016/2017 Sales

GOOD Q1 SALES, CONSISTENT WITH FY17
OUTLOOK GIVEN IN SEPTEMBER

ORGANIC SALES GROWTH: +4%
(REPORTED GROWTH: +1%)

FY17 GUIDANCE CONFIRMED:
ORGANIC GROWTH IN PRO BETWEEN +2% AND +4%

Sales for the first quarter of FY17 totalled € 2,248 million, with organic growth of +4%. Growth was +3% restated for the French technical impact , with:

  • Dynamic Q1 in the Americas (+8%) driven by continued strength in the USA
  • Stability for Asia-Rest of Worldwith China improving but Africa Middle East getting tougher>
  • Solid growth in Europe (+6%), partly favoured by technical impacts.

Reported growth was +1% due to the unfavourable FX impact over the period.

The Strategic International Brands (+3%) were a key driver of overall Sales growth improvement. This was the result of the continued strong momentum on Jameson, good growth on Ballantine’s and improvement on Absolut and Martell.
The Strategic Local Brands grew +5% thanks to Indian whiskies and Seagram’s Gin in Europe but difficulties for Imperial in Korea.
Strategic Wines were down -1%, mainly due to shipment phasing.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, stated,
“We have had a good start to the financial year, consistent with our full year guidance. Therefore, we confirm our FY17 guidance of organic growth in Profit from Recurring Operations of between +2% and +4%. We will continue to implement our long-term growth strategy, focusing investments behind our priority brands, markets and innovations and remaining disciplined on pricing and costs.”

Definitions and additional information related to the use of non-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.
 

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About Pernod Ricard

Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales of €9,182 million in FY19. Created in 1975 by the merger of Ricard and Pernod, the Group has developed through organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive brand portfolios in the industry, including: 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’s brands are distributed across 160+ markets and by its own salesforce in 73 markets. The Group’s decentralised organisation empowers its 19,000 employees to be true on-the-ground ambassadors of its vision of “Créateurs de Convivialité.” As reaffirmed by the Group’s three-year strategic plan, “Transform and Accelerate,” deployed in 2018, Pernod Ricard’s strategy focuses on investing in long-term, profitable growth for all stakeholders. The Group remains true to its three founding values: entrepreneurial spirit, mutual trust, and a strong sense of ethics. As illustrated by the 2030 roadmap supporting the United Nations Sustainable Development Goals (SDGs), “We bring good times from a good place.” In recognition of Pernod Ricard’s strong commitment to sustainable development and responsible consumption, it has received a Gold rating from Ecovadis and is ranked No. 1 in the beverage sector in Vigeo Eiris. Pernod Ricard is also a United Nation’s Global Compact LEAD company.
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

Adam RAMJEAN Investor Relations Manager
Tel: +33 (0)1 41 00 41 59

Fabien Darrigues External Communications Director
Tel: +33 (0)1 41 00 44 86

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