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Pernod Ricard — Earnings Release 2014
Oct 23, 2014
1591_iss_2014-10-23_f9bc78d8-6b9b-4e5c-b161-591704c8563d.pdf
Earnings Release
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Q1 2014/15 SALES Press release - Paris, 23 October 2014
RETURN TO GROWTH IN Q1, DESPITE A DIFFICULT ENVIRONMENT
ORGANIC SALES GROWTH: +2%
2014/15 GUIDANCE: ORGANIC GROWTH IN PROBETWEEN +1% AND +3%
Sales for the first quarter of 2014/15 totalled € 2,037 million. Pernod Ricard posted organic growth of +2%, representing a return to growth, including:
- a gradual improvement in Asia-Rest of World (+4%)
- a mixed performance in Europe (-1%)
- continued growth in the Americas (+3%)
Reported growth was +1% due to a slightly unfavourable foreign exchange effect over the period.
The Top 14 (+2%) returned to growth.
Priority Premium Wines declined (-3%) despite the continued growth of the Campo Viejo and Brancott Estate brands.
The 18 Key Local Brands (+7%) reported very good growth driven by Indian whiskies.
As part of this communication, Pierre Pringuet, Chief Executive Officer, stated: "Pernod Ricard's return to growth in the first quarter illustrates the Group's resilience in a difficult context. We are confident in the strength of our portfolio and distribution network. The roll-out of project Allegro will contribute to strengthening our operational efficiency."
Alexandre Ricard, Deputy Chief Executive Officer and Chief Operating Officer, added: "For the full financial year we anticipate a gradual improvement in sales, in an environment that will remain difficult. We plan to increase investment behind our priority brands and innovations. As a result, our 2014/15 guidance is organic growth in profit from recurring operations between +1% and +3%."
A detailed presentation of sales for the first quarter of 2014/15 can be downloaded from our website: www.pernod-ricard.com
Note: All growth data specified in this press release refers to organic growth, unless otherwise stated.
Q1 2014/15 SALES
Press release - Paris, 23 October 2014
About Pernod Ricard
Pernod Ricard is the world's co-leader in wines and spirits with consolidated sales of € 7,945 million in 2013/14. 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, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well Jacob's Creek, Brancott Estate, Campo Viejo, Graffigna and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,000 people and operates through a decentralised organisation, with 6 "Brand Companies" and 80 "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 the NYSE Euronext exchange (Ticker: RI; ISIN code: FR0000120693) and is a member of the CAC 40 index.
| Contacts Pernod Ricard | |
|---|---|
| Julia Massies / VP, Financial Communication & Investor Relations | +33 (0)1 41 00 42 02 |
| Sylvie Machenaud / Director External Communications | +33 (0)1 41 00 42 74 |
| Alison Donohoe / Investor Relations | +33 (0)1 41 00 42 14 |
| Carina Alfonso Martin / Press Relations Manager | +33 (0)1 41 00 43 42 |
Ukraine
Q1 2014/15 SALES Press release - Paris, 23 October 2014
Appendices
Emerging Markets
| Asia-Rest of World Americas |
Europe | ||
|---|---|---|---|
| Algeria | Malaysia | Argentina | Albania |
| Angola | Mongolia | Bolivia | Armenia |
| Cambodia | Morocco | Brazil | Azerbaijan |
| Cameroon | Mozambique | Caribbean | Belarus |
| China | Namibia | Chile | Bosnia |
| Congo | Nigeria | Colombia | Bulgaria |
| Egypt | Persian Gulf | Costa Rica | Croatia |
| Ethiopia | Philippines | Cuba | Georgia |
| Gabon | Senegal | Dominican Republic | Hungary |
| Ghana | South Africa | Ecuador | Kazakhstan |
| India | Sri Lanka | Guatemala | Kosovo |
| Indonesia | Syria | Honduras | Latvia |
| Iraq | Tanzania | Mexico | Lithuania |
| Ivory Coast | Thailand | Panama | Macedonia |
| Jordan | Tunisia | Paraguay | Moldova |
| Kenya | Turkey | Peru | Montenegro |
| Laos | Uganda | Puerto Rico | Poland |
| Lebanon | Vietnam | Uruguay | Romania |
| Madagascar | Zambia | Venezuela | Russia |
| Serbia |
Sales Analysis by Region
| Net Sales (€ millions) |
Q1 2013/14 | Q1 2014/15 | Change | Organic Growth | Group Structure | Forex impact | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Europe | 666 | 33% | 652 | 32% | (15) | -2% | (4) | -1% | (4) | -1% | (6) | -1% |
| Americas | 532 | 26% | 530 | 26% | (2) | 0% | 16 | 3% | 6 | 1% | (24) | -4% |
| Asia / Rest of World | 814 | 40% | 855 | 42% | 41 | 5% | 34 | 4% | 0 | 0% | 7 | 1% |
| World | 2,013 | 100% | 2,037 | 100% | 2 5 |
1 % |
4 6 |
2 % |
3 | 0 % |
(24) | -1% |
Q1 2014/15 SALES
Press release - Paris, 23 October 2014
Organic Sales Growth of the Top 14(1)
| Net Sales | Volumes | Price/mix | |
|---|---|---|---|
| Absolut | -2% | -1% | -1% |
| Chivas Regal | 9 % |
10% | 0 % |
| Ballantine's | 9 % |
7 % |
2 % |
| Ricard | -4% | -4% | 0 % |
| Jameson | 9 % |
8 % |
1 % |
| Havana Club | -7% | -5% | -2% |
| Malibu | -7% | -6% | -2% |
| Beefeater | -3% | -5% | 2 % |
| Kahlua | 23% | 18% | 5 % |
| Martell | -4% | 7 % |
-10% |
| The Glenlivet | 17% | 12% | 5 % |
| Royal Salute | 3 % |
6 % |
-3% |
| Mumm | 3 % |
7 % |
-4% |
| Perrier-Jouët | -2% | -4% | 2 % |
| Top 14 | 2 % |
2 % |
0 % |
(1) Data may be subject to rounding
Q1 2014/15 SALES
Press release - Paris, 23 October 2014
Foreign exchange impact Q1 2014/15 (sales)
| Forex impact Q1 2014/15 (€ millions) |
Average rates evolution | On Net | |||
|---|---|---|---|---|---|
| 2013/14 | 2014/15 | % | Sales | ||
| Argentinian peso | ARS | 7.40 | 10.98 | 48.5% | (12) |
| Venezuelan bolivar | VEF | 16.56 | 66.26 | 300.2% | (7) |
| Russian rouble | RUB | 43.45 | 48.08 | 10.6% | (6) |
| Ukrainian hryvnia | UAH | 10.79 | 16.66 | 54.4% | (3) |
| Canadian dollar | CAD | 1.38 | 1.44 | 4.8% | (3) |
| Chinese yuan | CNY | 8.11 | 8.17 | 0.7% | (2) |
| Japanese yen | JPY | 131.05 | 137.74 | 5.1% | (1) |
| US dollar | USD | 1.32 | 1.33 | 0.0% | (0) |
| Indian rupee | INR | 82.46 | 80.31 | -2.6% | 4 |
| Korean won | KRW | 1.47 | 1.36 | -7.3% | 5 |
| Pound sterling | GBP | 0.85 | 0.79 | -7.1% | 7 |
| Other currencies | (5) | ||||
| Total | (24) |
Foreign Exchange Impact for the Full-Year 2014/15 (profit from recurring operations)
Over the full 2014/15 financial year, the forex impact on profit from recurring operations is estimated at approximately +€ 80 million, based on 17 October 2014 forex rates, particularly EUR/USD of 1.29.