Very dynamic Q1 at +20%, on low comparison basis, with strong demand in most markets Q1 reported growth +22%

Sales for the first quarter of FY22 totalled € 2,718 million, with an organic growth of +20%:

• Very dynamic start in all regions, with robust demand and strong shipments ahead of festive season
• Off-trade remaining resilient and markets supported by On-trade reopening
• Travel Retail still very subdued but benefitting from low basis of comparison.

By category, Sales were driven by:

• Strategic International Brands: +24%, with broad-based growth, in particular for Martell, Jameson, Ballantine’s, Chivas Regal and Absolut. Positive price/mix
• Strategic Local Brands: +15%, driven by strong double-digit growth of Seagram’s Indian whiskies
• Specialty Brands: +21%, thanks in particular to Malfy, Avion, Del Maguey, Aberlour, Monkey 47, US whiskeys and Lillet
• Strategic Wines: -7% (vs. +9% in Q1 FY21) due in particular to New Zealand supply constraints.

Reported Sales growth was +22%, with an overall favourable FX impact, mainly from Chinese yuan.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, stated,  

“We have had a very dynamic start to the year, as expected, with strong demand in most markets. The Off-trade remains resilient and I am particularly pleased to note the continued recovery of the On-trade.
We expect good sales growth to continue through FY22, albeit moderating vs. Q1. We will continue to implement our strategy, notably accelerating our digital transformation and reinvesting to seize present and future growth opportunities"

All growth data specified in this press release refers to organic growth (at constant FX and Group structure), unless otherwise stated. Data may be subject to rounding.

A detailed presentation of Q1 FY22 Sales can be downloaded 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 and acquisitions and disposals. 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.