Slight sales decline in Q1 2013/1410/24/2013
Guidance of organic growth in Profit from Recurring Operations between +4% et +5% for FY 2013/14
Press Release - Paris, 24 October 2013
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.
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 Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.
Contacts Pernod Ricard
Julia MASSIES / Financial Communication – Investor Relations VP
Tel: +33 (0)1 41 00 41 71
Sylvie MACHENAUD / Director External Communications
Tel: +33 (0)1 41 00 42 74
Alison DONOHOE / Investor Relations
Tel: +33 (0)1 41 00 42 14
Apolline Celeyron / Press Relations Officer
Tel: +33 (0)1 41 00 40 97