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Performance for the first 9 months in line with H1


Confirmation of FY 2013/14 guidance:
Organic growth in Profit from Recurring Operations between +1% and +3%

Third Quarter

Press Release - Paris, 24 April 2014

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Sales for the first nine months of the 2013/14 financial year totalled € 6,186 million. In line with the first half-year, sales were stable excluding foreign exchange and Group structure effects. The reported decline was -7% due to a highly unfavourable foreign exchange effect.

In Asia/Rest of World (-3%), sales were impacted primarily by China where the decline was exacerbated by destocking in the third quarter as anticipated. Excluding China, sales growth was +5% over the nine months compared to +2% in the half-year. Of particular note was the very good performance in India and Travel Retail. The situation remained difficult in Korea and Thailand.

In the Americas (+4%), organic growth improved slightly compared with the half-year due in particular to the good performance in Brazil. Good growth in the US (+4%) continued to be driven by excellent price/mix but slowed down slightly compared with the half-year.

In Europe (+2%), Western Europe was stable whilst Eastern Europe posted growth of +9%. The third quarter was largely impacted by unfavourable technical effects (later Easter, excise duty increases, price increases, phasing of promotions, etc.).

The portfolio dynamics were similar to that of the half-year:

  • Top 14 was virtually stable (-1%), with the return to growth of Scotch whiskies in the third quarter
  • Priority Premium Wines were stable
  • Key Local Brands (+5%) posted strong growth

Emerging markets (-1%), excluding China, remained dynamic (+7%). Mature markets (+1%) followed the same trend as in the half-year.


Several highlights of the third quarter can be noted:

  • The Group’s operational efficiency programme, the Allegro project, is being gradually implemented, in line with the set objectives of simplification, prioritisation and mutualisation
  • New distribution agreements were negotiated in April 2014 with Pernod Ricard USA’s largest distributors (Southern Wine & Spirits and Republic National Distributing Co.)
  • Pernod Ricard made a tactical acquisition of a premium California wine (Kenwood) to achieve critical size in wine in the US, a key market for the development of this category
  • In March 2014 the Group successfully issued a 6-year bond of € 850 million at highly favourable terms. The 2% coupon was the lowest ever achieved for this maturity by a BBB- rated company

Pierre Pringuet, Chief Executive Officer of Pernod Ricard, took this opportunity to comment: “In an environment that remains challenging, our performance over the nine months was in line with the half-year and with our annual guidance. I am pleased with the acquisition of Kenwood and with the strengthening of our partnerships with our two largest US distributors, which reinforce the Group’s portfolio and execution capability in the US.”


Note: All growth data specified in this press release refers to organic growth, unless otherwise stated.

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