Pernod Ricard: Robust Performance With Improving Momentum in Q3
Q3 ORGANIC NET SALES STABLE AND REPORTED -2%
YTD ORGANIC
Press Release –
This robust performance illustrates the strength of our diversified portfolio of premium international spirits and our broad-based geographic footprint covering mature and emerging markets.
This strength largely mitigates the impact of slower performance in
Dynamic results achieved notably in the Must Win Markets of
FY24 Q3
FY24 9M
Volumes grew by +1% in Q3, with growth resuming following four consecutive quarters of decline, with FY24 9M volumes decline -4%
9M Price/mix effect +2%, as the strong, though moderating, price effect at +6% is partially offset by negative market mix
By regions, including Must Win Markets (Q3/YTD)
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Americas : -7%/-7%:USA -11%/-8%, accelerating brand activation, notably on Jameson and newly acquired brands-
YTD Organic
Net Sales performance -8%, with depletions value c.-7% and underlying Sell-Out at c.-3% as theUS Spirits market growth remains broadly unchanged and with trade inventories continuing to be adjusted in Q3 -
Jameson Original gains share within its competitive set, following largest ever
PR USA investment over the Saint Patrick’s Day period - Good Sell-Out performance on Kahlua, Código and Jefferson’s
-
YTD Organic
Canada : broadly stable YTD, with stronggrowth in Q3 on Jameson, Kahlua & BumbuBrazil : strong rebound in Q3 against favourable comps and improving consumer demand, with growth on Ballantine’s,Absolut and BeefeaterMexico : soft decline YTD withnotably weaker tourism impacting On-Trade
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Europe -6%/-5%, excludingRussia a very resilient +4%/+1%: cycling a strong H1 FY23, with growth notably driven byGermany andEastern Europe France : modest decline YTD, with Q3 in growth driven by strong performance of Ricard and BumbuSpain : broadly stable YTD with solid growth in Q3 on favourable comps after H1 lapped On-trade recovery and revenge conviviality last year, with good growth YTD on Ballantine’s, Jameson andChivas Regal Germany : strong double-digit growth YTD driven byAbsolut , Jameson and Ballantine’s with favourable comps vs Q3 LYUK : soft performance with good growth YTD on Jameson, Kahlua and MalibuPoland : strong growth YTD thanks to Ballantine’s and Jameson
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Asia-RoW +8%/+2%: Dynamic and accelerating regional performance across
Asia andAfrica , with the exception ofChina :India +8%/+5%, strong, broad-based and accelerating performance- Strong consumer demand for spirits
- Sales accelerating and premiumisation continuing
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Strong YTD growth of Strategic International Brands with Jameson,
Absolut and The Glenlivet - Strong growth of Seagram’s whisky brands led by Royal Stag and Blenders Pride
China -12%/-9% in a challenging macroeconomic environment- Sales decline with continuing soft consumer sentiment leading to a weak CNY
- Solid performance of Martell Noblige
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Strong growth on premium International brands Jameson,
Absolut ,Olmeca and Beefeater
Japan : double-digit growth YTD driven by Perrier-Jouët,Chivas Regal and The Glenlivet , with a favourable phasing effect in Q3Korea : soft YTD, with better Q3 led by good performance on Jameson and Ballantine’s- Other
Asia : strong YTD growth ofTaiwan Market Africa andMiddle East : strong double-digit growth in Q3 and YTD driven byTurkey with outstanding growth onChivas Regal , Ballantine’s andOlmeca ;South Africa with Jameson and RTDs andNigeria maintaining very strong growth with Martell and Jameson
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Global Travel Retail +38%/+9%: Improving Sell-Out momentum amplified by phasing and favourable comps in Q3
- Good growth across the portfolio notably on Jameson, Martell and Scotch brands
- Gradual recovery of Chinese travelers continuing
- Favourable phasing in Q3 as expected, particularly impacting on TR Asia
By brands:
-
Strategic International Brands: +1%/-3%, Inventory adjustments in the US and softer performance in
China weigh on the overall YTD performance of Strategic International Brands. Key highlights by Market and Brand include Martell inNigeria ; Jameson inIndia ,Germany andKorea ;Absolut inGermany ,China ,India andTurkey ;Chivas Regal inTurkey ,Japan andWestern Europe ; Ballantine’s inTurkey ,Germany andPoland ; The Glenlivet inIndia ,Taiwan Market andJapan ; andRoyal Salute inTaiwan Market -
Strategic Local Brands:
+5%/+4%, with good momentum of the Seagram’s whiskies portfolio in
India , with Kahlua in the US andUK ; withOlmeca across all regions -
Specialty Brands: -7%/-6%, impacted by the US inventory adjustments.
Net Sales highlights include Bumbu, the recently launched Deacon Scotch Whisky and Altos Tequila -
Strategic Wines: -9%/-10%, mainly driven by declines in USA and
UK
Outlook
Building on very strong FY23 and robust 9M FY24 performances,
In a challenging environment,
-
Dynamic Q4
Net Sales , improving versus 9M, leading to broadly stable full year OrganicNet Sales - Continued focus on Revenue Growth Management and operational efficiencies
-
A&P ratio at c. 16% of
Net Sales and very strict control of Structure Costs - Organic Operating Margin expansion, with Organic Profit from Recurring Operations growing by c.+1%
- Negative FX impact partially offset by perimeter effect
- Investments in strategic inventories at a similar level to FY23, and increase in Capex to c.€800m
- Free Cash Flow reflecting lower reported PRO and increase in strategic investments
- c.€300m share buyback for the year, with c.€150m completed in H1
Dividend
An interim dividend of €2.35 per share will be detached on 17th
All growth data specified in this press release refers to organic growth (at constant
Organic Growth for named markets excludes Travel Retail.
This press release is also available from our website: www.pernod-ricard.com
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, acquisitions and disposals and changes in applicable accounting principles and hyperinflation.
- 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.
- The impact of hyperinflation on
- 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
Appendices
Financial Tables can be consulted on www.pernod-ricard.com
Date |
Event |
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S&R Webcast |
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Full Year Results |
1 Mainly depreciation against Euro for Argentinean Peso, Turkish Lira, US Dollar, Chinese Yuan and Indian Rupee
2 Mainly hyperinflation in
3 Subject to change
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424260046/en/
Florence Tresarrieu / Global SVP Investor Relations and
Emmanuel Vouin / Head of External Engagement +33 (0) 1 70 93 16 34
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