Company Announcements

Pernod Ricard: Excellent Rebound with Sales and PRO¹ Above FY19 levels² And Strong Growth Momentum

+10% organic Sales growth (+4% reported)

+18% organic growth in PRO (+7% reported)

Recurring Free Cash Flow of €1,745m, at historical high

PARIS--(BUSINESS WIRE)--Sep. 1, 2021-- Regulatory News:

Press release - Paris, 1 September 2021

Pernod Ricard (Paris:RI):

SALES

Sales for FY21 totalled €8,824m, with organic growth of +9.7%. Reported Sales growth was +4.5% due to a significant adverse FX impact resulting from USD and Emerging market currency depreciation vs. Euro.

FY21 Sales grew in all regions:

  • Americas: +14%, excellentbroad-based growth with the USA, Canada and South America offsetting decline in Travel Retail
  • Asia-RoW: +11%, very strong growth mainly driven by China, Korea and Turkey, and to a lesser extent India
  • Europe: +4%, dynamic reboundwith the UK, Germany and Eastern Europe offsetting declines in Spain, Ireland and Travel Retail.

By category:

  • Strategic International Brands: +11%, very strong rebound, primarily driven by Martell in China and Jameson in the USA
  • Strategic Local Brands: +7%, driven by recoveryof Seagram’s Indian whiskies, Kalhua, Passport and Ramazzotti
  • Specialty Brands: +28%, continued very strong growthof Lillet, Aberlour, Malfy, American whiskeys, Avion and Redbreast
  • Strategic Wines: stable, with Campo Viejo growth offset by decline of Jacob’s Creek and Kenwood.

Innovation grew +22%.

Price/mix was +4% on Strategic brands.

Q4 Sales were €1,883m, +56.5% organic growth, on a low basis of comparison.

FY21 saw very strong and diversified growth driven by domestic Must-wins with the USA and China reaching record Sales above $2bn and €1bn. Premiumisationwas strong, thanks to growth of Strategic International Brands and Specialty Brands. Pernod Ricardgained market share in most key markets.

Business transformation momentum is strong, with significant investments behind priority brands and markets, strong progress in digital transformation, strong e-commerce growth (+63%) and acceleration of the sustainability roadmap.

RESULTS

FY21 PRO was €2,423m, an organic growth of +18.3% (+7.2% reported) with a very strong organic operating margin expansion of +213bps:

  • Gross margin expanding +64bps driven by:
    • Stable pricing with fewer price increases in Covid context
    • Better fixed cost absorption from volume growthandoperational excellence savings
  • A&P ratio at c. 16%, resulting from purpose-based investment, with quick response to channel shifts and strong reinvestment in markets and categories returning to growth
  • Structure costs: +136bps, reflecting very strict discipline and FY20 reorganisations. A strong increase is expected in FY22 to support future growth
  • PRO includes +€28m from USA drawback
  • Significant FX impact on PRO -€255m due to USD and Emerging market currency depreciation vs. Euro.

The FY21 corporate income tax rate on recurring items was 24.3%, in line with that of FY20, with geographical mix offsetting the positive effect of the French tax rate reduction.

Group share of Net PRO was €1,612m, +12% reported vs. FY20.

Group share of Net profit was €1,305m, +297% reported, a significant increasedue mainly to non-recurring items in FY20, in particular a €1bn impairment charge.

CASH FLOW AND DEBT

Cash performance was outstanding, with Recurring Free Cash Flow at €1,745m, its historical high.

The average cost of debt stood at 2.8% vs. 3.6% in FY20, thanks to successful bond refinancing.

Net debt decreased by €972m vs. 30 June 2020to €7,452m driven primarily by a very significant Free Cash Flow improvement linked to business recovery. The Net Debt/EBITDA ratio at average rates3 was 2.6x at 30 June 2021.

The return to stakeholders is significant:

  • A dividend of €3.12 is proposed for the Annual General Meeting of 10 November 2021, back to the historical high of FY19
  • The remaining c. €0.5bn Share buyback programme will resume in FY22
  • A second employee ownership programme will take place in FY224.

WINNING STRATEGY

The Transform & Accelerate strategy launched in 2018 has driven significant achievements. The fundamental consumer insights driving the strategy are now more compelling than ever. As a result, Pernod Ricard will continue its transformational journey to become The Conviviality Platform. This strategy seeks to maximise long-term value creation, with the following medium-term ambition (in a normalised context):

Embed dynamic growth and deliver operating leverage

  • +4 to +7% topline growth, leveraging key competitive advantages and consistent investment behind key priorities
  • Focus on pricing and building new operational excellence initiatives
  • Significant A&P investment, maintained at c.16% of Sales, with strong arbitration to support must-win brands and markets while stimulating innovation
  • Discipline on Structure costs, investing in priorities while maintaining agile organisation, with growth below topline growth rates
  • Operating leverage of c.50-60 bps pa, provided topline within +4 to +7% bracket

Financial policy priorities, while retaining Investment grade ratings:

  1. Investment in future organic growth, in particular through strategic inventories and capex
  2. Continued active portfolio management, including value-creating M&A
  3. Dividend distribution at c.50% of Net profit from Recurring Operations
  4. Share buy-back programme (to resume in FY22)

A comprehensive strategic update will be provided during a capital market day in FY22.

Alexandre Ricard , Chairman and Chief Executive Officer, stated,

“The business rebounded very strongly during FY21 to exceed FY19 levels. We expect this good Sales momentum to continue in FY22 with, in particular, a very dynamic Q1. I would like to take this opportunity to praise the exceptional commitment of our teams during this difficult time and express my support to those who have been or continue to be impacted by this pandemic.

We will stay the strategic course, accelerating our digital transformation and our ambitious Sustainability & Responsibility roadmap. Thanks to our solid fundamentals, our teams and our brand portfolio, we are emerging from this crisis stronger.”

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 FY21 Sales and Results can be downloaded from our website: www.pernod-ricard.com

Audit procedures have been carried out on the financial statements. The Statutory Auditors’ report will be issued after examination of the management report and completion of procedures required for the filing of the Universal registration document.”

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.

About Pernod Ricard

Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales of €8,824 million in FY21. 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 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 Sustainability and Responsibility roadmap supporting the United Nations Sustainable Development Goals (SDGs), “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. 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 and Eurostoxx 50 indices.

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

Ukraine

Strategic International Brands’ organic Sales growth

Volumes
FY21
Organic Sales
growth
FY21
Volumes Price/mix
(in 9Lcs millions)
 
Absolut

10.5

5%

2%

3%

Chivas Regal

3.6

3%

-1%

4%

Ballantine's

7.6

1%

6%

-5%

Ricard

4.2

-1%

1%

-3%

Jameson

8.6

15%

14%

1%

Havana Club

4.3

-4%

3%

-7%

Malibu

4.8

24%

22%

2%

Beefeater

2.9

-5%

-6%

2%

Martell

2.4

24%

20%

3%

The Glenlivet

1.4

19%

16%

3%

Royal Salute

0.2

-6%

-12%

6%

Mumm

0.7

12%

12%

0%

Perrier-Jouët

0.3

5%

6%

0%

Strategic International Brands

51.5

11%

7%

4%

Sales Analysis by Period and Region

Net Sales
(€ millions)
FY20 FY21 Change Organic Growth Group Structure Forex impact
 
Americas

2,449

29.0

%

2,627

29.8

%

178

7

%

336

14

%

85

 

3

%

(244

)

-10

%

Asia / Rest of World

3,467

41.0

%

3,640

41.2

%

173

5

%

372

11

%

1

 

0

%

(201

)

-6

%

Europe

2,532

30.0

%

2,557

29.0

%

26

1

%

101

4

%

(11

)

0

%

(64

)

-3

%

World

8,448

100.0

%

8,824

100.0

%

376

4

%

810

10

%

75

 

1

%

(508

)

-6

%

 
Net Sales
(€ millions)
Q4 FY20 Q4 FY21 Change Organic Growth Group Structure Forex impact
 
Americas

411

33.2

%

633

33.6

%

222

54

%

255

64

%

17

 

4

%

(50

)

-12

%

Asia / Rest of World

368

29.8

%

635

33.7

%

266

72

%

278

76

%

1

 

0

%

(12

)

-3

%

Europe

458

37.0

%

616

32.7

%

157

34

%

158

35

%

(1

)

0

%

0

 

0

%

World

1,238

100.0

%

1,883

100.0

%

646

52

%

691

57

%

16

 

1

%

(62

)

-5

%

 
Net Sales
(€ millions)
H2 FY20 H2 FY21 Change Organic Growth Group Structure Forex impact
 
Americas

988

33.2

%

1,225

31.9

%

237

24

%

315

33

%

38

 

4

%

(116

)

-12

%

Asia / Rest of World

1,052

35.4

%

1,513

39.4

%

461

44

%

521

50

%

0

 

0

%

(61

)

-6

%

Europe

934

31.4

%

1,101

28.7

%

168

18

%

184

20

%

(4

)

0

%

(12

)

-1

%

World

2,974

100.0

%

3,839

100.0

%

865

29

%

1,019

35

%

35

 

1

%

(189

)

-6

%

Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group

Summary Consolidated Income Statement

(€ millions) FY20 FY21 Change
 
Net sales

8,448

 

8,824

 

4

%

Gross Margin after logistics costs

5,086

 

5,293

 

4

%

Advertising and promotion expenses

(1,327

)

(1,393

)

5

%

Contribution after A&P expenditure

3,759

 

3,900

 

4

%

Structure costs

(1,499

)

(1,477

)

-1

%

Profit from recurring operations

2,260

 

2,423

 

7

%

Financial income/(expense) from recurring operations

(328

)

(262

)

-20

%

Corporate income tax on items from recurring operations

(468

)

(526

)

12

%

Net profit from discontinued operations, non-controlling interests and share of net income from associates

(25

)

(24

)

-4

%

Group share of net profit from recurring operations

1,439

 

1,612

 

12

%

 
Other operating income & expenses

(1,283

)

(62

)

NA
Financial income/(expense) from non-recurring operations

(38

)

(109

)

NA
Corporate income tax on items from non recurring operations

210

 

(142

)

NA
Non controlling interests (non-recurring)

6

 

NA
 
Group share of net profit

329

 

1,305

 

NA
Non-controlling interests

21

 

13

 

-37

%

Net profit

350

 

1,318

 

NA

Note: USA Drawback impacting PRO +€28m and Other Operating Income & Expenses +€109m

Profit from Recurring Operations by Region

World
 
(€ millions) FY20 FY21 Change Organic Growth Group Structure Forex impact
 
Net sales (Excl. T&D)

8,448

 

100.0

%

8,824

 

100.0

%

376

 

4

%

810

 

10

%

75

 

1

%

(508

)

-6

%

Gross margin after logistics costs

5,086

 

60.2

%

5,293

 

60.0

%

206

 

4

%

550

 

11

%

33

 

1

%

(376

)

-7

%

Advertising & promotion

(1,327

)

15.7

%

(1,393

)

15.8

%

(66

)

5

%

(116

)

9

%

(15

)

1

%

66

 

-5

%

Contribution after A&P

3,759

 

44.5

%

3,900

 

44.2

%

141

 

4

%

434

 

12

%

17

 

0

%

(311

)

-8

%

Profit from recurring operations

2,260

 

26.8

%

2,423

 

27.5

%

163

 

7

%

415

 

18

%

2

 

0

%

(255

)

-11

%

 
Americas
 
(€ millions) FY20 FY21 Change Organic Growth Group Structure Forex impact
 
Net sales (Excl. T&D)

2,449

 

100.0

%

2,627

 

100.0

%

178

 

7

%

336

 

14

%

85

 

3

%

(244

)

-10

%

Gross margin after logistics costs

1,599

 

65.3

%

1,699

 

64.7

%

100

 

6

%

260

 

16

%

38

 

2

%

(197

)

-12

%

Advertising & promotion

(461

)

18.8

%

(470

)

17.9

%

(9

)

2

%

(39

)

9

%

(10

)

2

%

39

 

-9

%

Contribution after A&P

1,138

 

46.5

%

1,229

 

46.8

%

91

 

8

%

221

 

19

%

28

 

2

%

(158

)

-14

%

Profit from recurring operations

718

 

29.3

%

803

 

30.6

%

85

 

12

%

194

 

27

%

15

 

2

%

(124

)

-17

%

 
Asia / Rest of the World
 
(€ millions) FY20 FY21 Change Organic Growth Group Structure Forex impact
 
Net sales (Excl. T&D)

3,467

 

100.0

%

3,640

 

100.0

%

173

 

5

%

372

 

11

%

1

 

0

%

(201

)

-6

%

Gross margin after logistics costs

1,969

 

56.8

%

2,060

 

56.6

%

91

 

5

%

219

 

11

%

(4

)

0

%

(124

)

-6

%

Advertising & promotion

(517

)

14.9

%

(542

)

14.9

%

(25

)

5

%

(44

)

9

%

(1

)

0

%

20

 

-4

%

Contribution after A&P

1,452

 

41.9

%

1,518

 

41.7

%

66

 

5

%

175

 

12

%

(5

)

0

%

(103

)

-7

%

Profit from recurring operations

938

 

27.0

%

996

 

27.4

%

58

 

6

%

148

 

16

%

(6

)

-1

%

(84

)

-9

%

 
Europe
 
(€ millions) FY20 FY21 Change Organic Growth Group Structure Forex impact
 
Net sales (Excl. T&D)

2,532

 

100.0

%

2,557

 

100.0

%

26

 

1

%

101

 

4

%

(11

)

0

%

(64

)

-3

%

Gross margin after logistics costs

1,519

 

60.0

%

1,534

 

60.0

%

15

 

1

%

71

 

5

%

0

 

0

%

(55

)

-4

%

Advertising & promotion

(349

)

13.8

%

(381

)

14.9

%

(32

)

9

%

(33

)

9

%

(5

)

2

%

6

 

-2

%

Contribution after A&P

1,169

 

46.2

%

1,153

 

45.1

%

(17

)

-1

%

38

 

3

%

(6

)

0

%

(49

)

-4

%

Profit from recurring operations

605

 

23.9

%

624

 

24.4

%

19

 

3

%

73

 

12

%

(7

)

-1

%

(47

)

-8

%

Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group

Note: Drawback impacting Profit from Recurring Operations in Americas and World by +€28m

Foreign Exchange Impact

Forex impact FY21
(€ millions)
Average rates evolution On Net Sales On Profit from
Recurring
Operations
FY20 FY21 %
 
US dollar USD

1.11

1.19

7.9%

(180)

(89)

Russian rouble RUB

73.95

89.10

20.5%

(41)

(33)

Turkish Lira TRL

6.76

9.22

36.5%

(33)

(31)

Indian rupee INR

80.13

87.94

9.7%

(92)

(28)

Chinese yuan CNY

7.77

7.90

1.5%

(17)

(13)

Pound sterling GBP

0.88

0.89

1.0%

(3)

4

Other

(142)

(65)

Total

(508)

(255)

Sensitivity of profit and debt to EUR/USD exchange rate

Estimated impact of a 1% appreciation of the USD
 
Impact on the income statement(1) (€ millions)
Profit from recurring operations + 11
Financial expenses

(2

)

Pre-tax profit from recurring operations + 10
 
 
 
Impact on the balance sheet (€ millions)
Increase/(decrease) in net debt + 36
 
(1) Full-year effect

Balance Sheet

Assets 30/06/2020 30/06/2021
(€ millions)
 
(Net book value)
Non-current assets
Intangible assets and goodwill

16,576

16,230

Tangible assets and other assets

3,699

3,963

Deferred tax assets

1,678

1,623

Total non-current assets

21,953

21,816

 
Current assets
Inventories

6,167

6,555

aged work-in-progress

5,084

5,373

non-aged work-in-progress

76

84

other inventories

1,006

1,098

Receivables (*)

906

1,126

Trade receivables

862

1,080

Other trade receivables

44

46

Other current assets

323

413

Other operating current assets

317

408

Tangible/intangible current assets

6

6

Tax receivable

142

141

Cash and cash equivalents and current derivatives

1,947

2,086

Total current assets

9,485

10,321

 
Assets held for sale

87

11

 
Total assets

31,525

32,147

 
(*) after disposals of receivables of:

513

592

 
Liabilities and shareholders’ equity 30/06/2020 30/06/2021
(€ millions)
 
Group Shareholders’ equity

13,968

14,829

Non-controlling interests

243

246

of which profit attributable to non-controlling interests

21

13

Total Shareholders’ equity

14,211

15,075

 
Non-current provisions and deferred tax liabilities

3,511

3,555

Bonds non-current

8,599

8,787

Lease liabilities - non current

433

405

Non-current financial liabilities and derivative instruments

192

108

Total non-current liabilities

12,735

12,854

 
Current provisions

222

163

Operating payables

1,877

2,337

Other operating payables

1,016

1,134

of which other operating payables

633

724

of which tangible/intangible current payables

383

410

Tax payable

232

282

Bonds - current

723

70

Lease liabilities - current

88

103

Current financial liabilities and derivatives

404

128

Total current liabilities

4,563

4,218

 
Liabilities held for sale

16

-

 
Total liabilities and shareholders' equity

31,525

32,147

Analysis of Working Capital Requirement

(€ millions) June
2019
June
2020
June
2021
FY20WC
change*
FY21WC
change*
 
Aged work in progress

4,788

 

5,084

 

5,373

 

294

 

206

 

Advances to suppliers for wine and ageing spirits

12

 

19

 

9

 

7

 

(10

)

Payables on wine and ageing spirits

(105

)

(108

)

(93

)

(5

)

22

 

Net aged work in progress

4,695

 

4,995

 

5,289

 

296

 

218

 

 
Trade receivables before factoring/securitization

1,842

 

1,375

 

1,672

 

(434

)

309

 

Advances from customers

(24

)

(38

)

(21

)

(14

)

17

 

Other receivables

338

 

343

 

445

 

12

 

64

 

Other inventories

889

 

1,006

 

1,098

 

121

 

91

 

Non-aged work in progress

79

 

76

 

84

 

(1

)

9

 

Trade payables and other

(2,717

)

(2,364

)

(2,946

)

293

 

(574

)

Gross operating working capital

405

 

398

 

331

 

(24

)

(85

)

 

Factoring/Securitization impact

(674

)

(513

)

(592

)

161

 

(79

)

Net Operating Working Capital

(269

)

(115

)

(261

)

138

 

(164

)

 

 

 

 

 

Net Working Capital

4,427

 

4,879

 

5,028

 

433

 

54

 

 

 

 

 

 

* at average rates Of which recurring variation

450

 

79

 

Of which non recurring variation

(17

)

(25

)

Net Debt

(€ millions) 30/06/2020 30/06/2021
Current Non-current Total Current Non-current Total
Bonds

723

 

8,599

 

9,322

 

70

 

8,787

 

8,857

 

Commercial paper

299

 

-

 

299

 

7

 

-

 

7

 

Other loans and long-term debts

81

 

192

 

273

 

115

 

108

 

222

 

Other financial liabilities

380

 

192

 

572

 

122

 

108

 

229

 

Gross Financial debt

1,103

 

8,791

 

9,894

 

192

 

8,894

 

9,086

 

Fair value hedge derivatives – assets

(3

)

(40

)

(44

)

-

 

(22

)

(22

)

Fair value hedge derivatives – liabilities

-

 

-

 

-

 

-

 

-

 

-

 

Fair value hedge derivatives

(3

)

(40

)

(44

)

-

 

(22

)

(22

)

Net investment hedge derivatives – assets

-

 

(13

)

(13

)

-

 

(43

)

(43

)

Net investment hedge derivatives – liabilities

-

 

-

 

-

 

-

 

-

 

-

 

Net investment hedge derivatives

-

 

(13

)

(13

)

-

 

(43

)

(43

)

FINANCIAL DEBT AFTER HEDGING

1,100

 

8,737

 

9,837

 

192

 

8,830

 

9,022

 

Cash and cash equivalents

(1,935

)

-

 

(1,935

)

(2,078

)

-

 

(2,078

)

NET FINANCIAL DEBT EXCLUDING LEASE DEBT

(835

)

8,737

 

7,902

 

(1,886

)

8,830

 

6,944

 

Lease Debt

88

 

433

 

522

 

103

 

405

 

508

 

NET FINANCIAL DEBT

(747

)

9,171

 

8,424

 

(1,783

)

9,235

 

7,452

 

Change in Net Debt

(€ millions)

30/06/2020  30/06/2021
Operating profit

978

 2,361

Depreciation and amortisation

350

367

Net change in impairment of goodwill, PPE and intangible assets

1,007

78

Net change in provisions

97

(80)

Changes in fair value on commercial derivatives and biological assets

(3)

1

Net (gain)/loss on disposal of assets

(27)

(16)

Share-based payments

23

28

Self-financing capacity before interest and tax

2,423

2,738

Decrease / (increase) in working capital requirements

(433)

(54)

Net interest and tax payments

(809)

(686)

Net acquisitions of non financial assets and others

(352)

(370)

Free Cash Flow

830

1,628

of which recurring Free Cash Flow

1,003

1,745

Net acquitions of financial assets and activities and others

(587)

(116)

Dividends paid

(849)

(704)

(Acquisition) / Disposal of treasury shares and others

(526)

(20)

Decrease / (increase) in net debt (before currency translation adjustments)

(1,132)

788

Foreign currency translation adjustment

(69)

265

Non cash impact on lease liabilities

(603)

(81)

Decrease / (increase) in net debt (after currency translation adjustments and IFRS 16 non cash impacts)

(1,804)

972

Initial net debt

(6,620)

(8,424)

Final net debt

(8,424)

(7,452)

Net Debt Maturity at 30 June 2021

€ billions

[Missing charts are available on the original document and on www.pernod-ricard.com]

Strong liquidity position at c. €5.5bn as of 30th June 2021, of which €3.4bn credit lines undrawn

Gross debt after hedging at 30 June 2021 (excluding lease liabilities)

- 8% floating rate and 92% fixed rate

- 61% in EUR and 39% in USD

Bond details

Currency Par value Coupon Issue date Maturity date
 
EUR € 500 m

1.875

%

9/28/2015 9/28/2023
€ 1,500 m o/w:
€ 500 m

0.000

%

10/24/2019 10/24/2023
€ 500 m

0.500

%

10/24/2027
€ 500 m

0.875

%

10/24/2031
€ 650 m

2.125

%

9/29/2014 9/27/2024
€ 1,500 m o/w: 4/1/2020
€ 750 m

1.125

%

4/7/2025
€ 750 m

1.750

%

4/8/2030
€ 500 m o/w: 4/27/2020
€ 250 m

1.125

%

4/7/2025
€ 250 m

1.750

%

4/8/2030
€ 600 m

1.500

%

5/17/2016 5/18/2026
 
USD $ 1,650 m o/w:
$ 800 m

4.250

%

1/12/2012 7/15/2022
$ 850 m

5.500

%

1/15/2042
$ 600 m

3.250

%

6/8/2016 6/8/2026
$ 2,000 m o/w:
$ 600 m

1.250

%

4/1/2028
$ 900 m

1.625

%

10/1/2020 4/1/2031
$ 500 m

2.750

%

10/1/2050

Net Debt / EBITDA ratio evolution

Closing rate Average rate(1)
EUR/USD rate Jun FY20 -> Jun FY21 1,12 -> 1,19 1,11 -> 1,19
Ratio at 30/06/2020

3.2

3.2

EBITDA & cash generation excl. Group structure effect and forex impacts

(0.9)

(0.9)

Group structure and forex impacts

0.3

0.3

Ratio at 30/06/2021

2.6

2.6

1) Last-twelve-month rate

Diluted EPS calculation

(x 1,000)   FY20   FY21  
     
Number of shares in issue at end of period  

265,422

 

261,877

 
Weighted average number of shares in issue (pro rata temporis)  

265,422

 

262,143

 
Weighted average number of treasury shares (pro rata temporis)  

(2,564)

 

(1,347)

 
Dilutive impact of stock options and performance shares  

1,179

 

718

 
Number of shares used in diluted EPS calculation  

264,037

 

261,514

 
       
       
(€ millions and €/share)   FY20   FY21   reported
      Δ
Group share of net profit from recurring operations  

1,439

 

1,612

 

12.0%

Diluted net earnings per share from recurring operations  

5.45

 

6.16

 

13.1%

Note: 3.5m shares cancelled in July 2020 pursuant to share buy-back

Upcoming Communications

Date1

Event

21 October 2021 9am CET

Q1 FY22 Sales

10 November 2021 2pm CET

Annual General Meeting

22 November 2021 3pm CET

EMEA LATAM conference Call

10 February 2022 9am CET

H1 FY22 Sales and Results

1 The above dates are indicative and are liable to change

1 PRO: Profit from Recurring Operations

2 At constant FX

3 Based on average EUR/USD rates: 1.19 in FY21

4 Subject to AMF approval (and to AGM of 10 November 2021 if launched after that date)

Julia Massies / VP, Financial Communications & Investor Relations +33 (0) 1 70 93 17 03
Charly Montet / Investor Relations Manager +33 (0) 1 70 93 17 13
Emmanuel Vouin / Head of External Engagement +33 (0) 1 70 93 16 34

Source: Pernod Ricard