Pernod Ricard Capital Markets Day

Today, Pernod Ricard is hosting its Capital Markets Day in Paris. Alexandre Ricard, Chairman and CEO along with members of both the executive committee and leadership teams in key markets will demonstrate how Pernod Ricard is implementing its Conviviality Platform, as the next step in its Transform and Accelerate FY23 to FY25 strategic plan.

Alexandre Ricard stated:
“In today's world and for many companies, the end goal is to leverage data. For us, at Pernod Ricard, the end goal is to spread convivialité… by leveraging data.”

The Conviviality Platform is about leveraging the power of data, our portfolio of brands and our distribution network to further stretch Pernod Ricard’s profitable and sustainable growth, with the following mid-term ambition:

• +4 to +7% annual topline growth framework aiming for the upper end of the range
  • Stretching our topline growth with the Conviviality Platform
  • Building on our key competitive advantages, leveraging our broad-based portfolio and balanced geographical footprint
• Focus on pricing, further enhanced by our proprietary predictive digital tools
• Continuous improvement in operational efficiency, building on our culture of excellence
• Significant A&P investment, maintained at c.16% of Sales, with higher return on investments leveraging Key Digital Programs
• Discipline on Structure costs, investing in priorities while maintaining an agile organisation, aiming at increase below topline growth
• Operating leverage of c.50-60 bps pa, provided topline within +4 to +7% range
• Confirmed financial policy priorities

The event will be live-streamed and the webcast will be accessible here: https://edge.media-server.com/mmc/p/fchhrvg5

All growth data specified in this press release refers to organic growth, unless otherwise stated. Data may be subject to rounding.

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.
• 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.