+10% organic Sales growth (+4% reported)
+18% organic growth in PRO (+7% reported)
Recurring Free Cash Flow of €1,745m, at historical high
Regulatory News:
Press release - Paris, 1 September 2021
Pernod Ricard (Paris:RI):
SALES
Sales for FY21 totalled €8,824m, with organic growth of +9.7%. Reported Sales growth was +4.5% due to a significant adverse FX impact resulting from USD and Emerging market currency depreciation vs. Euro.
FY21 Sales grew in all regions:
- Americas: +14%, excellent broad-based growth with the USA, Canada and South America offsetting decline in Travel Retail
- Asia-RoW: +11%, very strong growth mainly driven by China, Korea and Turkey, and to a lesser extent India
- Europe: +4%, dynamic rebound with the UK, Germany and Eastern Europe offsetting declines in Spain, Ireland and Travel Retail.
By category:
- Strategic International Brands: +11%, very strong rebound, primarily driven by Martell in China and Jameson in the USA
- Strategic Local Brands: +7%, driven by recovery of Seagram’s Indian whiskies, Kalhua, Passport and Ramazzotti
- Specialty Brands: +28%, continued very strong growth of Lillet, Aberlour, Malfy, American whiskeys, Avion and Redbreast
- Strategic Wines: stable, with Campo Viejo growth offset by decline of Jacob’s Creek and Kenwood.
Innovation grew +22%.
Price/mix was +4% on Strategic brands.
Q4 Sales were €1,883m, +56.5% organic growth, on a low basis of comparison.
FY21 saw very strong and diversified growth driven by domestic Must-wins with the USA and China reaching record Sales above $2bn and €1bn. Premiumisation was strong, thanks to growth of Strategic International Brands and Specialty Brands. Pernod Ricard gained market share in most key markets.
Business transformation momentum is strong, with significant investments behind priority brands and markets, strong progress in digital transformation, strong e-commerce growth (+63%) and acceleration of the sustainability roadmap.
RESULTS
FY21 PRO was €2,423m, an organic growth of +18.3% (+7.2% reported) with a very strong organic operating margin expansion of +213bps:
-
Gross margin expanding +64bps driven by:
- Stable pricing with fewer price increases in Covid context
- Better fixed cost absorption from volume growth andoperational excellence savings
- A&P ratio at c. 16%, resulting from purpose-based investment, with quick response to channel shifts and strong reinvestment in markets and categories returning to growth
- Structure costs: +136bps, reflecting very strict discipline and FY20 reorganisations. A strong increase is expected in FY22 to support future growth
- PRO includes +€28m from USA drawback
- Significant FX impact on PRO -€255m due to USD and Emerging market currency depreciation vs. Euro.
The FY21 corporate income tax rate on recurring items was 24.3%, in line with that of FY20, with geographical mix offsetting the positive effect of the French tax rate reduction.
Group share of Net PRO was €1,612m, +12% reported vs. FY20.
Group share of Net profit was €1,305m, +297% reported, a significant increase due mainly to non-recurring items in FY20, in particular a €1bn impairment charge.
CASH FLOW AND DEBT
Cash performance was outstanding, with Recurring Free Cash Flow at €1,745m, its historical high.
The average cost of debt stood at 2.8% vs. 3.6% in FY20, thanks to successful bond refinancing.
Net debt decreased by €972m vs. 30 June 2020 to €7,452m driven primarily by a very significant Free Cash Flow improvement linked to business recovery. The Net Debt/EBITDA ratio at average rates3 was 2.6x at 30 June 2021.
The return to stakeholders is significant:
- A dividend of €3.12 is proposed for the Annual General Meeting of 10 November 2021, back to the historical high of FY19
- The remaining c. €0.5bn Share buyback programme will resume in FY22
- A second employee ownership programme will take place in FY224.
WINNING STRATEGY
The Transform & Accelerate strategy launched in 2018 has driven significant achievements. The fundamental consumer insights driving the strategy are now more compelling than ever. As a result, Pernod Ricard will continue its transformational journey to become The Conviviality Platform. This strategy seeks to maximise long-term value creation, with the following medium-term ambition (in a normalised context):
Embed dynamic growth and deliver operating leverage
- +4 to +7% topline growth, leveraging key competitive advantages and consistent investment behind key priorities
- Focus on pricing and building new operational excellence initiatives
- Significant A&P investment, maintained at c.16% of Sales, with strong arbitration to support must-win brands and markets while stimulating innovation
- Discipline on Structure costs, investing in priorities while maintaining agile organisation, with growth below topline growth rates
- Operating leverage of c.50-60 bps pa, provided topline within +4 to +7% bracket
Financial policy priorities, while retaining Investment grade ratings:
- Investment in future organic growth, in particular through strategic inventories and capex
- Continued active portfolio management, including value-creating M&A
- Dividend distribution at c.50% of Net profit from Recurring Operations
- Share buy-back programme (to resume in FY22)
A comprehensive strategic update will be provided during a capital market day in FY22.
Alexandre Ricard, Chairman and Chief Executive Officer, stated,
“The business rebounded very strongly during FY21 to exceed FY19 levels. We expect this good Sales momentum to continue in FY22 with, in particular, a very dynamic Q1. I would like to take this opportunity to praise the exceptional commitment of our teams during this difficult time and express my support to those who have been or continue to be impacted by this pandemic.
We will stay the strategic course, accelerating our digital transformation and our ambitious Sustainability & Responsibility roadmap. Thanks to our solid fundamentals, our teams and our brand portfolio, we are emerging from this crisis stronger.”
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 FY21 Sales and Results can be downloaded from our website: www.pernod-ricard.com
Audit procedures have been carried out on the financial statements. The Statutory Auditors’ report will be issued after examination of the management report and completion of procedures required for the filing of the Universal registration document.”
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.
Profit from recurring operations
Profit from recurring operations corresponds to the operating profit excluding other non-current operating income and expenses.
About Pernod Ricard
Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales of €8,824 million in FY21. Created in 1975 by the merger of Ricard and Pernod, the Group has developed through organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive brand portfolios in the industry, including: 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, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, and Kenwood wines. Pernod Ricard’s brands are distributed across 160+ markets and by its own salesforce in 73 markets. The Group’s decentralised organisation empowers its 19,000 employees to be true on-the-ground ambassadors of its vision of “Créateurs de Convivialité.” As reaffirmed by the Group’s strategic plan, “Transform and Accelerate,” deployed in 2018, Pernod Ricard’s strategy focuses on investing in long-term, profitable growth for all stakeholders. The Group remains true to its three founding values: entrepreneurial spirit, mutual trust, and a strong sense of ethics, as illustrated by the 2030 Sustainability and Responsibility roadmap supporting the United Nations Sustainable Development Goals (SDGs), “Good times from a good place.” In recognition of Pernod Ricard’s strong commitment to sustainable development and responsible consumption, it has received a Gold rating from Ecovadis. Pernod Ricard is also a United Nation’s Global Compact LEAD company.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.
Appendices
Emerging Markets
| Asia-Rest of World | Americas | Europe | |
| Algeria | Malaysia | Argentina | Albania |
| Angola | Mongolia | Bolivia | Armenia |
| Cambodia | Morocco | Brazil | Azerbaijan |
| Cameroon | Mozambique | Caribbean | Belarus |
| China | Namibia | Chile | Bosnia |
| Congo | Nigeria | Colombia | Bulgaria |
| Egypt | Persian Gulf | Costa Rica | Croatia |
| Ethiopia | Philippines | Cuba | Georgia |
| Gabon | Senegal | Dominican Republic | Hungary |
| Ghana | South Africa | Ecuador | Kazakhstan |
| India | Sri Lanka | Guatemala | Kosovo |
| Indonesia | Syria | Honduras | Latvia |
| Iraq | Tanzania | Mexico | Lithuania |
| Ivory Coast | Thailand | Panama | Macedonia |
| Jordan | Tunisia | Paraguay | Moldova |
| Kenya | Turkey | Peru | Montenegro |
| Laos | Uganda | Puerto Rico | Poland |
| Lebanon | Vietnam | Uruguay | Romania |
| Madagascar | Zambia | Venezuela | Russia |
| Serbia | |||
Ukraine |
|||
Strategic International Brands’ organic Sales growth
| Volumes FY21 |
Organic Sales growth FY21 |
Volumes | Price/mix | |||||
| (in 9Lcs millions) | ||||||||
| Absolut | 10.5 |
5% |
2% |
3% |
||||
| Chivas Regal | 3.6 |
3% |
-1% |
4% |
||||
| Ballantine's | 7.6 |
1% |
6% |
-5% |
||||
| Ricard | 4.2 |
-1% |
1% |
-3% |
||||
| Jameson | 8.6 |
15% |
14% |
1% |
||||
| Havana Club | 4.3 |
-4% |
3% |
-7% |
||||
| Malibu | 4.8 |
24% |
22% |
2% |
||||
| Beefeater | 2.9 |
-5% |
-6% |
2% |
||||
| Martell | 2.4 |
24% |
20% |
3% |
||||
| The Glenlivet | 1.4 |
19% |
16% |
3% |
||||
| Royal Salute | 0.2 |
-6% |
-12% |
6% |
||||
| Mumm | 0.7 |
12% |
12% |
0% |
||||
| Perrier-Jouët | 0.3 |
5% |
6% |
0% |
||||
| Strategic International Brands | 51.5 |
11% |
7% |
4% |
Sales Analysis by Period and Region
| Net Sales (€ millions) |
FY20 | FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||
| Americas | 2,449 |
29.0 |
% |
2,627 |
29.8 |
% |
178 |
7 |
% |
336 |
14 |
% |
85 |
|
3 |
% |
(244 |
) |
-10 |
% |
||||||
| Asia / Rest of World | 3,467 |
41.0 |
% |
3,640 |
41.2 |
% |
173 |
5 |
% |
372 |
11 |
% |
1 |
|
0 |
% |
(201 |
) |
-6 |
% |
||||||
| Europe | 2,532 |
30.0 |
% |
2,557 |
29.0 |
% |
26 |
1 |
% |
101 |
4 |
% |
(11 |
) |
0 |
% |
(64 |
) |
-3 |
% |
||||||
| World | 8,448 |
100.0 |
% |
8,824 |
100.0 |
% |
376 |
4 |
% |
810 |
10 |
% |
75 |
|
1 |
% |
(508 |
) |
-6 |
% |
||||||
| Net Sales (€ millions) |
Q4 FY20 | Q4 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||
| Americas | 411 |
33.2 |
% |
633 |
33.6 |
% |
222 |
54 |
% |
255 |
64 |
% |
17 |
|
4 |
% |
(50 |
) |
-12 |
% |
||||||
| Asia / Rest of World | 368 |
29.8 |
% |
635 |
33.7 |
% |
266 |
72 |
% |
278 |
76 |
% |
1 |
|
0 |
% |
(12 |
) |
-3 |
% |
||||||
| Europe | 458 |
37.0 |
% |
616 |
32.7 |
% |
157 |
34 |
% |
158 |
35 |
% |
(1 |
) |
0 |
% |
0 |
|
0 |
% |
||||||
| World | 1,238 |
100.0 |
% |
1,883 |
100.0 |
% |
646 |
52 |
% |
691 |
57 |
% |
16 |
|
1 |
% |
(62 |
) |
-5 |
% |
||||||
| Net Sales (€ millions) |
H2 FY20 | H2 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||
| Americas | 988 |
33.2 |
% |
1,225 |
31.9 |
% |
237 |
24 |
% |
315 |
33 |
% |
38 |
|
4 |
% |
(116 |
) |
-12 |
% |
||||||
| Asia / Rest of World | 1,052 |
35.4 |
% |
1,513 |
39.4 |
% |
461 |
44 |
% |
521 |
50 |
% |
0 |
|
0 |
% |
(61 |
) |
-6 |
% |
||||||
| Europe | 934 |
31.4 |
% |
1,101 |
28.7 |
% |
168 |
18 |
% |
184 |
20 |
% |
(4 |
) |
0 |
% |
(12 |
) |
-1 |
% |
||||||
| World | 2,974 |
100.0 |
% |
3,839 |
100.0 |
% |
865 |
29 |
% |
1,019 |
35 |
% |
35 |
|
1 |
% |
(189 |
) |
-6 |
% |
||||||
Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group
Summary Consolidated Income Statement
| (€ millions) | FY20 | FY21 | Change | |||
| Net sales | 8,448 |
|
8,824 |
|
4 |
% |
| Gross Margin after logistics costs | 5,086 |
|
5,293 |
|
4 |
% |
| Advertising and promotion expenses | (1,327 |
) |
(1,393 |
) |
5 |
% |
| Contribution after A&P expenditure | 3,759 |
|
3,900 |
|
4 |
% |
| Structure costs | (1,499 |
) |
(1,477 |
) |
-1 |
% |
| Profit from recurring operations | 2,260 |
|
2,423 |
|
7 |
% |
| Financial income/(expense) from recurring operations | (328 |
) |
(262 |
) |
-20 |
% |
| Corporate income tax on items from recurring operations | (468 |
) |
(526 |
) |
12 |
% |
| Net profit from discontinued operations, non-controlling interests and share of net income from associates | (25 |
) |
(24 |
) |
-4 |
% |
| Group share of net profit from recurring operations | 1,439 |
|
1,612 |
|
12 |
% |
| Other operating income & expenses | (1,283 |
) |
(62 |
) |
NA | |
| Financial income/(expense) from non-recurring operations | (38 |
) |
(109 |
) |
NA | |
| Corporate income tax on items from non recurring operations | 210 |
|
(142 |
) |
NA | |
| Non controlling interests (non-recurring) | 6 |
|
NA | |||
| Group share of net profit | 329 |
|
1,305 |
|
NA | |
| Non-controlling interests | 21 |
|
13 |
|
-37 |
% |
| Net profit | 350 |
|
1,318 |
|
NA | |
Note: USA Drawback impacting PRO +€28m and Other Operating Income & Expenses +€109m
Profit from Recurring Operations by Region
| World | ||||||||||||||||||||||||||||||
| (€ millions) | FY20 | FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||||||
| Net sales (Excl. T&D) | 8,448 |
|
100.0 |
% |
8,824 |
|
100.0 |
% |
376 |
|
4 |
% |
810 |
|
10 |
% |
75 |
|
1 |
% |
(508 |
) |
-6 |
% |
||||||
| Gross margin after logistics costs | 5,086 |
|
60.2 |
% |
5,293 |
|
60.0 |
% |
206 |
|
4 |
% |
550 |
|
11 |
% |
33 |
|
1 |
% |
(376 |
) |
-7 |
% |
||||||
| Advertising & promotion | (1,327 |
) |
15.7 |
% |
(1,393 |
) |
15.8 |
% |
(66 |
) |
5 |
% |
(116 |
) |
9 |
% |
(15 |
) |
1 |
% |
66 |
|
-5 |
% |
||||||
| Contribution after A&P | 3,759 |
|
44.5 |
% |
3,900 |
|
44.2 |
% |
141 |
|
4 |
% |
434 |
|
12 |
% |
17 |
|
0 |
% |
(311 |
) |
-8 |
% |
||||||
| Profit from recurring operations | 2,260 |
|
26.8 |
% |
2,423 |
|
27.5 |
% |
163 |
|
7 |
% |
415 |
|
18 |
% |
2 |
|
0 |
% |
(255 |
) |
-11 |
% |
||||||
| Americas | ||||||||||||||||||||||||||||||
| (€ millions) | FY20 | FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||||||
| Net sales (Excl. T&D) | 2,449 |
|
100.0 |
% |
2,627 |
|
100.0 |
% |
178 |
|
7 |
% |
336 |
|
14 |
% |
85 |
|
3 |
% |
(244 |
) |
-10 |
% |
||||||
| Gross margin after logistics costs | 1,599 |
|
65.3 |
% |
1,699 |
|
64.7 |
% |
100 |
|
6 |
% |
260 |
|
16 |
% |
38 |
|
2 |
% |
(197 |
) |
-12 |
% |
||||||
| Advertising & promotion | (461 |
) |
18.8 |
% |
(470 |
) |
17.9 |
% |
(9 |
) |
2 |
% |
(39 |
) |
9 |
% |
(10 |
) |
2 |
% |
39 |
|
-9 |
% |
||||||
| Contribution after A&P | 1,138 |
|
46.5 |
% |
1,229 |
|
46.8 |
% |
91 |
|
8 |
% |
221 |
|
19 |
% |
28 |
|
2 |
% |
(158 |
) |
-14 |
% |
||||||
| Profit from recurring operations | 718 |
|
29.3 |
% |
803 |
|
30.6 |
% |
85 |
|
12 |
% |
194 |
|
27 |
% |
15 |
|
2 |
% |
(124 |
) |
-17 |
% |
||||||
| Asia / Rest of the World | ||||||||||||||||||||||||||||||
| (€ millions) | FY20 | FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||||||
| Net sales (Excl. T&D) | 3,467 |
|
100.0 |
% |
3,640 |
|
100.0 |
% |
173 |
|
5 |
% |
372 |
|
11 |
% |
1 |
|
0 |
% |
(201 |
) |
-6 |
% |
||||||
| Gross margin after logistics costs | 1,969 |
|
56.8 |
% |
2,060 |
|
56.6 |
% |
91 |
|
5 |
% |
219 |
|
11 |
% |
(4 |
) |
0 |
% |
(124 |
) |
-6 |
% |
||||||
| Advertising & promotion | (517 |
) |
14.9 |
% |
(542 |
) |
14.9 |
% |
(25 |
) |
5 |
% |
(44 |
) |
9 |
% |
(1 |
) |
0 |
% |
20 |
|
-4 |
% |
||||||
| Contribution after A&P | 1,452 |
|
41.9 |
% |
1,518 |
|
41.7 |
% |
66 |
|
5 |
% |
175 |
|
12 |
% |
(5 |
) |
0 |
% |
(103 |
) |
-7 |
% |
||||||
| Profit from recurring operations | 938 |
|
27.0 |
% |
996 |
|
27.4 |
% |
58 |
|
6 |
% |
148 |
|
16 |
% |
(6 |
) |
-1 |
% |
(84 |
) |
-9 |
% |
||||||
| Europe | ||||||||||||||||||||||||||||||
| (€ millions) | FY20 | FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||||||||
| Net sales (Excl. T&D) | 2,532 |
|
100.0 |
% |
2,557 |
|
100.0 |
% |
26 |
|
1 |
% |
101 |
|
4 |
% |
(11 |
) |
0 |
% |
(64 |
) |
-3 |
% |
||||||
| Gross margin after logistics costs | 1,519 |
|
60.0 |
% |
1,534 |
|
60.0 |
% |
15 |
|
1 |
% |
71 |
|
5 |
% |
0 |
|
0 |
% |
(55 |
) |
-4 |
% |
||||||
| Advertising & promotion | (349 |
) |
13.8 |
% |
(381 |
) |
14.9 |
% |
(32 |
) |
9 |
% |
(33 |
) |
9 |
% |
(5 |
) |
2 |
% |
6 |
|
-2 |
% |
||||||
| Contribution after A&P | 1,169 |
|
46.2 |
% |
1,153 |
|
45.1 |
% |
(17 |
) |
-1 |
% |
38 |
|
3 |
% |
(6 |
) |
0 |
% |
(49 |
) |
-4 |
% |
||||||
| Profit from recurring operations | 605 |
|
23.9 |
% |
624 |
|
24.4 |
% |
19 |
|
3 |
% |
73 |
|
12 |
% |
(7 |
) |
-1 |
% |
(47 |
) |
-8 |
% |
||||||
Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group
Note: Drawback impacting Profit from Recurring Operations in Americas and World by +€28m
Foreign Exchange Impact
| Forex impact FY21 (€ millions) |
Average rates evolution | On Net Sales | On Profit from Recurring Operations |
|||||||
| FY20 | FY21 | % | ||||||||
| US dollar | USD | 1.11 |
1.19 |
7.9% |
(180) |
(89) |
||||
| Russian rouble | RUB | 73.95 |
89.10 |
20.5% |
(41) |
(33) |
||||
| Turkish Lira | TRL | 6.76 |
9.22 |
36.5% |
(33) |
(31) |
||||
| Indian rupee | INR | 80.13 |
87.94 |
9.7% |
(92) |
(28) |
||||
| Chinese yuan | CNY | 7.77 |
7.90 |
1.5% |
(17) |
(13) |
||||
| Pound sterling | GBP | 0.88 |
0.89 |
1.0% |
(3) |
4 |
||||
| Other | (142) |
(65) |
||||||||
| Total | (508) |
(255) |
||||||||
Sensitivity of profit and debt to EUR/USD exchange rate
| Estimated impact of a 1% appreciation of the USD | ||
| Impact on the income statement(1) | (€ millions) | |
| Profit from recurring operations | + 11 | |
| Financial expenses | (2 |
) |
| Pre-tax profit from recurring operations | + 10 | |
| Impact on the balance sheet | (€ millions) | |
| Increase/(decrease) in net debt | + 36 | |
| (1) Full-year effect | ||
Balance Sheet
| Assets | 30/06/2020 | 30/06/2021 |
| (€ millions) | ||
| (Net book value) | ||
| Non-current assets | ||
| Intangible assets and goodwill | 16,576 |
16,230 |
| Tangible assets and other assets | 3,699 |
3,963 |
| Deferred tax assets | 1,678 |
1,623 |
| Total non-current assets | 21,953 |
21,816 |
| Current assets | ||
| Inventories | 6,167 |
6,555 |
| aged work-in-progress | 5,084 |
5,373 |
| non-aged work-in-progress | 76 |
84 |
| other inventories | 1,006 |
1,098 |
| Receivables (*) | 906 |
1,126 |
| Trade receivables | 862 |
1,080 |
| Other trade receivables | 44 |
46 |
| Other current assets | 323 |
413 |
| Other operating current assets | 317 |
408 |
| Tangible/intangible current assets | 6 |
6 |
| Tax receivable | 142 |
141 |
| Cash and cash equivalents and current derivatives | 1,947 |
2,086 |
| Total current assets | 9,485 |
10,321 |
| Assets held for sale | 87 |
11 |
| Total assets | 31,525 |
32,147 |
| (*) after disposals of receivables of: | 513 |
592 |
| Liabilities and shareholders’ equity | 30/06/2020 | 30/06/2021 |
| (€ millions) | ||
| Group Shareholders’ equity | 13,968 |
14,829 |
| Non-controlling interests | 243 |
246 |
| of which profit attributable to non-controlling interests | 21 |
13 |
| Total Shareholders’ equity | 14,211 |
15,075 |
| Non-current provisions and deferred tax liabilities | 3,511 |
3,555 |
| Bonds non-current | 8,599 |
8,787 |
| Lease liabilities - non current | 433 |
405 |
| Non-current financial liabilities and derivative instruments | 192 |
108 |
| Total non-current liabilities | 12,735 |
12,854 |
| Current provisions | 222 |
163 |
| Operating payables | 1,877 |
2,337 |
| Other operating payables | 1,016 |
1,134 |
| of which other operating payables | 633 |
724 |
| of which tangible/intangible current payables | 383 |
410 |
| Tax payable | 232 |
282 |
| Bonds - current | 723 |
70 |
| Lease liabilities - current | 88 |
103 |
| Current financial liabilities and derivatives | 404 |
128 |
| Total current liabilities | 4,563 |
4,218 |
| Liabilities held for sale | 16 |
- |
| Total liabilities and shareholders' equity | 31,525 |
32,147 |
Analysis of Working Capital Requirement
| (€ millions) | June 2019 |
June 2020 |
June 2021 |
FY20WC change* |
FY21WC change* |
||||||
| Aged work in progress | 4,788 |
|
5,084 |
|
5,373 |
|
294 |
|
206 |
|
|
| Advances to suppliers for wine and ageing spirits | 12 |
|
19 |
|
9 |
|
7 |
|
(10 |
) |
|
| Payables on wine and ageing spirits | (105 |
) |
(108 |
) |
(93 |
) |
(5 |
) |
22 |
|
|
| Net aged work in progress | 4,695 |
|
4,995 |
|
5,289 |
|
296 |
|
218 |
|
|
| Trade receivables before factoring/securitization | 1,842 |
|
1,375 |
|
1,672 |
|
(434 |
) |
309 |
|
|
| Advances from customers | (24 |
) |
(38 |
) |
(21 |
) |
(14 |
) |
17 |
|
|
| Other receivables | 338 |
|
343 |
|
445 |
|
12 |
|
64 |
|
|
| Other inventories | 889 |
|
1,006 |
|
1,098 |
|
121 |
|
91 |
|
|
| Non-aged work in progress | 79 |
|
76 |
|
84 |
|
(1 |
) |
9 |
|
|
| Trade payables and other | (2,717 |
) |
(2,364 |
) |
(2,946 |
) |
293 |
|
(574 |
) |
|
| Gross operating working capital | 405 |
|
398 |
|
331 |
|
(24 |
) |
(85 |
) |
|
|
|||||||||||
| Factoring/Securitization impact | (674 |
) |
(513 |
) |
(592 |
) |
161 |
|
(79 |
) |
|
| Net Operating Working Capital | (269 |
) |
(115 |
) |
(261 |
) |
138 |
|
(164 |
) |
|
|
|
|
|
|
|||||||
| Net Working Capital | 4,427 |
|
4,879 |
|
5,028 |
|
433 |
|
54 |
|
|
|
|
|
|
|
|||||||
| * at average rates | Of which recurring variation | 450 |
|
79 |
|
||||||
| Of which non recurring variation | (17 |
) |
(25 |
) |
|||||||
Net Debt
| (€ millions) | 30/06/2020 | 30/06/2021 | ||||||||||
| Current | Non-current | Total | Current | Non-current | Total | |||||||
| Bonds | 723 |
|
8,599 |
|
9,322 |
|
70 |
|
8,787 |
|
8,857 |
|
| Commercial paper | 299 |
|
- |
|
299 |
|
7 |
|
- |
|
7 |
|
| Other loans and long-term debts | 81 |
|
192 |
|
273 |
|
115 |
|
108 |
|
222 |
|
| Other financial liabilities | 380 |
|
192 |
|
572 |
|
122 |
|
108 |
|
229 |
|
| Gross Financial debt | 1,103 |
|
8,791 |
|
9,894 |
|
192 |
|
8,894 |
|
9,086 |
|
| Fair value hedge derivatives – assets | (3 |
) |
(40 |
) |
(44 |
) |
- |
|
(22 |
) |
(22 |
) |
| Fair value hedge derivatives – liabilities | - |
|
- |
|
- |
|
- |
|
- |
|
- |
|
| Fair value hedge derivatives | (3 |
) |
(40 |
) |
(44 |
) |
- |
|
(22 |
) |
(22 |
) |
| Net investment hedge derivatives – assets | - |
|
(13 |
) |
(13 |
) |
- |
|
(43 |
) |
(43 |
) |
| Net investment hedge derivatives – liabilities | - |
|
- |
|
- |
|
- |
|
- |
|
- |
|
| Net investment hedge derivatives | - |
|
(13 |
) |
(13 |
) |
- |
|
(43 |
) |
(43 |
) |
| FINANCIAL DEBT AFTER HEDGING | 1,100 |
|
8,737 |
|
9,837 |
|
192 |
|
8,830 |
|
9,022 |
|
| Cash and cash equivalents | (1,935 |
) |
- |
|
(1,935 |
) |
(2,078 |
) |
- |
|
(2,078 |
) |
| NET FINANCIAL DEBT EXCLUDING LEASE DEBT | (835 |
) |
8,737 |
|
7,902 |
|
(1,886 |
) |
8,830 |
|
6,944 |
|
| Lease Debt | 88 |
|
433 |
|
522 |
|
103 |
|
405 |
|
508 |
|
| NET FINANCIAL DEBT | (747 |
) |
9,171 |
|
8,424 |
|
(1,783 |
) |
9,235 |
|
7,452 |
|
Change in Net Debt
(€ millions) |
30/06/2020 | 30/06/2021 |
| Operating profit | 978 |
2,361 |
| Depreciation and amortisation | 350 |
367 |
| Net change in impairment of goodwill, PPE and intangible assets | 1,007 |
78 |
| Net change in provisions | 97 |
(80) |
| Changes in fair value on commercial derivatives and biological assets | (3) |
1 |
| Net (gain)/loss on disposal of assets | (27) |
(16) |
| Share-based payments | 23 |
28 |
| Self-financing capacity before interest and tax | 2,423 |
2,738 |
| Decrease / (increase) in working capital requirements | (433) |
(54) |
| Net interest and tax payments | (809) |
(686) |
| Net acquisitions of non financial assets and others | (352) |
(370) |
| Free Cash Flow | 830 |
1,628 |
| of which recurring Free Cash Flow | 1,003 |
1,745 |
| Net acquitions of financial assets and activities and others | (587) |
(116) |
| Dividends paid | (849) |
(704) |
| (Acquisition) / Disposal of treasury shares and others | (526) |
(20) |
| Decrease / (increase) in net debt (before currency translation adjustments) | (1,132) |
788 |
| Foreign currency translation adjustment | (69) |
265 |
| Non cash impact on lease liabilities | (603) |
(81) |
| Decrease / (increase) in net debt (after currency translation adjustments and IFRS 16 non cash impacts) | (1,804) |
972 |
| Initial net debt | (6,620) |
(8,424) |
| Final net debt | (8,424) |
(7,452) |
Net Debt Maturity at 30 June 2021
€ billions
[Missing charts are available on the original document and on www.pernod-ricard.com]
Strong liquidity position at c. €5.5bn as of 30th June 2021, of which €3.4bn credit lines undrawn
Gross debt after hedging at 30 June 2021 (excluding lease liabilities)
- 8% floating rate and 92% fixed rate
- 61% in EUR and 39% in USD
Bond details
| Currency | Par value | Coupon | Issue date | Maturity date | |
| EUR | € 500 m | 1.875 |
% |
9/28/2015 | 9/28/2023 |
| € 1,500 m o/w: | |||||
| € 500 m | 0.000 |
% |
10/24/2019 | 10/24/2023 | |
| € 500 m | 0.500 |
% |
10/24/2027 | ||
| € 500 m | 0.875 |
% |
10/24/2031 | ||
| € 650 m | 2.125 |
% |
9/29/2014 | 9/27/2024 | |
| € 1,500 m o/w: | 4/1/2020 | ||||
| € 750 m | 1.125 |
% |
4/7/2025 | ||
| € 750 m | 1.750 |
% |
4/8/2030 | ||
| € 500 m o/w: | 4/27/2020 | ||||
| € 250 m | 1.125 |
% |
4/7/2025 | ||
| € 250 m | 1.750 |
% |
4/8/2030 | ||
| € 600 m | 1.500 |
% |
5/17/2016 | 5/18/2026 | |
| USD | $ 1,650 m o/w: | ||||
| $ 800 m | 4.250 |
% |
1/12/2012 | 7/15/2022 | |
| $ 850 m | 5.500 |
% |
1/15/2042 | ||
| $ 600 m | 3.250 |
% |
6/8/2016 | 6/8/2026 | |
| $ 2,000 m o/w: | |||||
| $ 600 m | 1.250 |
% |
4/1/2028 | ||
| $ 900 m | 1.625 |
% |
10/1/2020 | 4/1/2031 | |
| $ 500 m | 2.750 |
% |
10/1/2050 | ||
Net Debt / EBITDA ratio evolution
| Closing rate | Average rate(1) | |
| EUR/USD rate Jun FY20 -> Jun FY21 | 1,12 -> 1,19 | 1,11 -> 1,19 |
| Ratio at 30/06/2020 | 3.2 |
3.2 |
| EBITDA & cash generation excl. Group structure effect and forex impacts | (0.9) |
(0.9) |
| Group structure and forex impacts | 0.3 |
0.3 |
| Ratio at 30/06/2021 | 2.6 |
2.6 |
1) Last-twelve-month rate
Diluted EPS calculation
| (x 1,000) | FY20 | FY21 | ||||
| Number of shares in issue at end of period | 265,422 |
261,877 |
||||
| Weighted average number of shares in issue (pro rata temporis) | 265,422 |
262,143 |
||||
| Weighted average number of treasury shares (pro rata temporis) | (2,564) |
(1,347) |
||||
| Dilutive impact of stock options and performance shares | 1,179 |
718 |
||||
| Number of shares used in diluted EPS calculation | 264,037 |
261,514 |
||||
| (€ millions and €/share) | FY20 | FY21 | reported | |||
| Δ | ||||||
| Group share of net profit from recurring operations | 1,439 |
1,612 |
12.0% |
|||
| Diluted net earnings per share from recurring operations | 5.45 |
6.16 |
13.1% |
Note: 3.5m shares cancelled in July 2020 pursuant to share buy-back
Upcoming Communications
Date1 |
Event |
21 October 2021 9am CET |
Q1 FY22 Sales |
10 November 2021 2pm CET |
Annual General Meeting |
22 November 2021 3pm CET |
EMEA LATAM conference Call |
10 February 2022 9am CET |
H1 FY22 Sales and Results |
1 The above dates are indicative and are liable to change
1 PRO: Profit from Recurring Operations
2 At constant FX
3 Based on average EUR/USD rates: 1.19 in FY21
4 Subject to AMF approval (and to AGM of 10 November 2021 if launched after that date)
View source version on businesswire.com: https://www.businesswire.com/news/home/20210831006093/en/
Contacts
Julia Massies / VP, Financial Communications & Investor Relations +33 (0) 1 70 93 17 03
Charly Montet / Investor Relations Manager +33 (0) 1 70 93 17 13
Emmanuel Vouin / Head of External Engagement +33 (0) 1 70 93 16 34
