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Slight sales decline in Q1 2013/14

10/24/2013

Guidance of organic growth in Profit from Recurring Operations between +4% et +5% for FY 2013/14

First quarter 2013/14 Sales

Press Release - Paris, 24 October 2013

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Net sales for the first quarter of 2013/14 totalled € 2,013 million. In a more challenging environment, Pernod Ricard recorded an organic decline of -1%, adversely affected by:

  • high comparatives in Q1 2012/13, both for major markets (US: +16%, China: +18%, Russia: +28%) and for Martell (+23%)
  • the slowdown of emerging markets
  • unfavourable mix

Reported growth decreased -9%, due to a particularly unfavourable foreign exchange impact over the period.

The Top 14 posted a -5% decline with a slight decline in volumes (-1%). Mix was negative (-6%), particularly due to the decline of Martell and Ballantine’s in Asia, yet pricing remained favourable (+2%).

The growth of Priority Premium Wines (+1%) was driven by Brancott Estate and Campo Viejo.

The 18 Key Local Brands (+8%) posted a very good performance, in particular for brands targeting emerging middle classes.


The slowdown of emerging markets (-2%) was significantly impacted by strong comparatives (+13% in Q1 2012/13) and by China.

Mature markets (-1%) benefited from the strong performance of Western Europe, yet comparatives were unfavourable for the US.


During the period, the Group negotiated with its banks an amendment to its multi-currency revolving facility (€ 2.5 billion), which has been renewed for five years with the spread having been reduced 20 basis points for the drawn portion.

This announcement provided Pierre Pringuet, Chief Executive Officer of Pernod Ricard, with the opportunity to state: “Our first quarter was adversely affected by the slowdown of emerging markets and unfavourable technical effects. However, we remain confident in the diversity of our portfolio and the strength of our distribution network. We anticipate organic growth in full-year profit from recurring operations between +4% and +5%.”

 

A detailed presentation of sales for the first quarter of 2013/14 can be downloaded from the Financial Presentations page.

Note: All growth data specified in this press release refers to organic growth, unless otherwise stated. France is now included in the Europe operating segment.

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