-3.9% organic decrease in Sales (-8.9% reported)
-2.4% organic decline in PRO1 (-10.8% reported)
Regulatory News:
Pernod Ricard (Paris:RI):
H1 FY21 Sales and Results
Press release Paris, 11 February 2021
SALES
Sales for H1 FY21 totalled €4,985m, with an organic decline of -3.9% (-8.9% reported), with an unfavourable FX impact linked mainly to Euro appreciation vs. USD and Emerging market currencies.
H1 FY21 Sales declined but Q2 improved vs. Q1. For H1 FY21, the trends were:
- Americas +2%: good growth in most domestic markets, with particular dynamism in USA (+5%), but significant decline in Travel Retail
- Asia-RoW -6%: double-digit growth in China (+13%), Turkey, Korea and Pacific, and return to growth in India in Q2: +2% (India H1 -6%), but Covid-related declines in certain Asian markets and Travel Retail
- Europe -5%: continued very strong growth in Germany, UK, Russia and Poland, more than offset by Covid impact in Spain, France, Ireland and Travel Retail
- Sales excluding Travel Retail grew +1%.
Strategic International Brands declined due to Travel Retail and On-Trade exposure but Specialty Brands performed very strongly
- Strategic International Brands -6%: solid growth of Malibu, Jameson and The Glenlivet, but overall category impacted by Travel Retail exposure. Martell and Scotch growing in domestic markets
- Strategic Local Brands -4%: mainly driven by Seagram's Indian whiskies and Seagram's Gin in Spain
- Specialty Brands +22%: continued very dynamic development of Lillet, Malfy, Aberlour, American whiskeys (Jefferson's, TX, Rabbit Hole and Smooth Ambler), Avion and Redbreast
- Strategic Wines +3%: solid growth thanks mainly to Campo Viejo and Brancott Estate.
Pernod Ricard gained or held share in key markets, notably in Europe, despite the On-trade disruption. Dynamic portfolio management continued, with Innovation in strong growth (+10%.)
Q2 Sales were €2,750m, with -2.4% organic decline, but improvingvs. Q1 Sales (-5.6%), thanks in particular to better trends in China and India.
RESULTS
H1 FY21 Profit from Recurring Operations declined -2.4% organically, with an organic margin improvement of +51bps, thanks to dynamic management of resources and favourable phasing:
- Gross margin contracting-108bps, driven by:
- Soft pricing, with fewer price increases and on solid comparison basis (H1 FY20 +2% on Strategic Brands, benefiting from FY19 Martell price increases)
- Adverse mix primarily linked to decline in Travel Retail
- Higher Cost of Goods mainly from continued agave cost pressures and lower fixed cost absorption, offsetting Operational Excellence initiatives
- A&P: +132bps, resulting from purpose-based investment, with strong reduction in markets and channels with subdued demand, and favourable phasing (ratio of c. 16% expected for FY21, with strong double-digit increase in H2)
- Structure costs: improving +27bps, reflecting dynamic management of resources and FY20 reorganisations
- Strong negative FX impact on PRO -€155m due to USD and Emerging market currency depreciation vs. Euro. A significant negative FX impact is also expected for full-year FY21.
The H1 FY21 corporate income tax rate on recurring items was 23.4% vs. 24.2% for H1 FY20, due to a reduction in the French tax rate and geographical mix.
Group share of Net PRO was €1,087m, -11% reported vs. H1 FY20 and the Group share of Net profit €966m, -6% reported, reflecting decline in Profit from Recurring Operations partially offset by lower non-recurring items.
Earnings Per Share were -9%, reflecting decline in PRO and positive impact of FY20 Share buy-back
FREE CASH FLOW AND DEBT
Recurring Free Cash Flow was very strong at €995m. The decline in Profit from Recurring Operations was offset by a significant improvement in operating Working Capital Requirement (inventory normalisation and payables rebuilding vs. June, leading to very strong cash conversion2 at 79%), a lower increase in strategic inventories and broadly stable capital expenditure.
The average Cost of debt stood at 3.2% vs. 3.7% in H1 FY20, thanks to successful US Dollar bond debt refinancing.
Net debt decreased by €443m vs. 30 June 2020 to €7,980m. The Net Debt/EBITDA ratio at average rates3 was 3.4x at 31 December 2020.
SUSTAINABILITY RESPONSIBILITY
Pernod Ricard continued to drive its 2030 Sustainability Responsibility roadmap, with progress in each of the 4 pillars (Nurturing Terroir, Circular Making, Valuing People and Responsible Hosting.) Significant achievements were attained in particular regarding packaging: all single-use Point-of-Sales plastic will be removed from June 2021.
Alexandre Ricard, Chairman and Chief Executive Officer, stated,
"We are particularly encouraged by our Must-win domestic markets returning to growth in H1 FY21. The first half confirms the long-term sustainability and underlying strength of our business.
Despite an uncertain and volatile environment, with disruption in the On-trade and a prolonged downturn in Travel Retail, we anticipate organic Sales growth for full-year FY21, thanks in particular to our dynamic performance in domestic Must-win markets USA, China and India.
We will continue to implement our strategy, in particular accelerating our digital transformation, while dynamically managing resources. Thanks to our solid fundamentals, our teams and our brand portfolio, I am confident that Pernod Ricard will emerge from this crisis stronger.
I would like to take this opportunity to praise our teams, whose engagement and performance are exemplary in these very challenging times, and to express our support to our On-trade and Travel Retail partners who continue to be impacted by the pandemic."
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 H1 FY21 Sales and Results can be downloaded from our website: www.pernod-ricard.com
Limited review procedures have been carried out by the Statutory Auditors on the condensed half-yearly consolidated financial statements. The Statutory Auditors' Review Report on the Half-yearly Financial Information is being issued.
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 €8,448 million in FY20. 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 H1 FY21 | Organic Sales growth H1 FY21 | Volumes | Price/mix | |||||
| (in 9Lcs millions) | ||||||||
| Absolut | 5.6 | -12% | -11% | -1% | ||||
| Chivas Regal | 2.1 | -16% | -20% | 4% | ||||
| Ballantine's | 4.2 | -12% | -5% | -7% | ||||
| Ricard | 2.3 | -5% | -4% | -1% | ||||
| Jameson | 4.7 | 3% | 2% | 1% | ||||
| Havana Club | 2.4 | -9% | -2% | -6% | ||||
| Malibu | 2.5 | 26% | 26% | 0% | ||||
| Beefeater | 1.6 | -20% | -20% | 0% | ||||
| Martell | 1.5 | -3% | -6% | 3% | ||||
| The Glenlivet | 0.7 | 2% | 0% | 2% | ||||
| Royal Salute | 0.1 | -28% | -32% | 5% | ||||
| Mumm | 0.5 | -5% | -2% | -3% | ||||
| Perrier-Jouët | 0.2 | -19% | -17% | -2% | ||||
| Strategic International Brands | 28.3 | -6% | -5% | -1% |
Sales Analysis by Period and Region
| Net Sales (€ millions) | H1 FY20 | H1 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Americas | 1,461 | 26.7% | 1,402 | 28.1% | (59) | -4% | 22 | 2% | 47 | 3% | (128) | -9% | ||||||
| Asia Rest of World | 2,415 | 44.1% | 2,127 | 42.7% | (288) | -12% | (148) | -6% | 1 | 0% | (140) | -6% | ||||||
| Europe | 1,598 | 29.2% | 1,456 | 29.2% | (142) | -9% | (83) | -5% | (8) | 0% | (52) | -3% | ||||||
| World | 5,474 | 100.0% | 4,985 | 100.0% | (489) | -9% | (209) | -4% | 40 | 1% | (320) | -6% | ||||||
| Net Sales (€ millions) | Q2 FY20 | Q2 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Americas | 788 | 26.3% | 729 | 26.5% | (59) | -7% | (10) | -1% | 27 | 3% | (76) | -10% | ||||||
| Asia Rest of World | 1,299 | 43.4% | 1,209 | 44.0% | (90) | -7% | (11) | -1% | 0 | 0% | (79) | -6% | ||||||
| Europe | 904 | 30.2% | 811 | 29.5% | (93) | -10% | (50) | -6% | (5) | -1% | (37) | -4% | ||||||
| World | 2,991 | 100.0% | 2,750 | 100.0% | (241) | -8% | (71) | -2% | 22 | 1% | (192) | -6% | ||||||
| Net Sales (€ millions) | Q1 FY20 | Q1 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Americas | 674 | 27.1% | 673 | 30.1% | (0) | 0% | 32 | 5% | 20 | 3% | (52) | -8% | ||||||
| Asia Rest of World | 1,116 | 44.9% | 918 | 41.0% | (198) | -18% | (138) | -12% | 1 | 0% | (61) | -5% | ||||||
| Europe | 694 | 27.9% | 645 | 28.8% | (49) | -7% | (32) | -5% | (2) | 0% | (14) | -2% | ||||||
| World | 2,483 | 100.0% | 2,236 | 100.0% | (248) | -10% | (138) | -6% | 18 | 1% | (128) | -5% | ||||||
Note: Bulk Spirits are allocated by Region according to the Regions' weight in the Group
Summary Consolidated Income Statement
| (€ millions) | H1 FY20 | H1 FY21 | Change |
| Net sales | 5,474 | 4,985 | -9% |
| Gross Margin after logistics costs | 3,419 | 3,021 | -12% |
| Advertising and promotion expenses | (842) | (706) | -16% |
| Contribution after A&P expenditure | 2,577 | 2,315 | -10% |
| Structure costs | (789) | (721) | -9% |
| Profit from recurring operations | 1,788 | 1,595 | -11% |
| Financial income/(expense) from recurring operations | (164) | (151) | -8% |
| Corporate income tax on items from recurring operations | (392) | (337) | -14% |
| Net profit from discontinued operations, non-controlling interests and share of net income from associates | (15) | (20) | 30% |
| Group share of net profit from recurring operations | 1,216 | 1,087 | -11% |
| Other operating income expenses | (152) | (61) | NA |
| Financial income/(expense) from non-recurring operations | (1) | (103) | NA |
| Corporate income tax on items from non recurring operations | (31) | 44 | NA |
| Group share of net profit | 1,032 | 966 | -6% |
| Non-controlling interests | 14 | 18 | 26% |
| Net profit | 1,046 | 984 | -6% |
Profit from Recurring Operations by Region
| Segment Reporting | ||||||||||||||||||
| World | ||||||||||||||||||
| (€ millions) | H1 FY20 | H1 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) | 5,474 | 100.0% | 4,985 | 100.0% | (489) | -9% | (209) | -3.9% | 40 | 1% | (320) | -6% | ||||||
| Gross margin after logistics costs | 3,419 | 62.5% | 3,021 | 60.6% | (398) | -12% | (188) | -5.5% | 17 | 0% | (227) | -7% | ||||||
| Advertising promotion | (842) | 15.4% | (706) | 14.2% | 136 | -16% | 101 | -12.1% | (5) | 1% | 40 | -5% | ||||||
| Contribution after A&P | 2,577 | 47.1% | 2,315 | 46.4% | (261) | -10% | (87) | -3.4% | 12 | 0% | (187) | -7% | ||||||
| Profit from recurring operations | 1,788 | 32.7% | 1,595 | 32.0% | (193) | -11% | (42) | -2.4% | 4 | 0% | (155) | -9% | ||||||
| Americas | ||||||||||||||||||
| (€ millions) | H1 FY20 | H1 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) | 1,461 | 100.0% | 1,402 | 100.0% | (59) | -4% | 22 | 2% | 47 | 3% | (128) | -9% | ||||||
| Gross margin after logistics costs | 986 | 67.5% | 909 | 64.8% | (77) | -8% | 3 | 0% | 22 | 2% | (103) | -10% | ||||||
| Advertising promotion | (285) | 19.5% | (250) | 17.8% | 35 | -12% | 18 | -6% | (4) | 2% | 21 | -8% | ||||||
| Contribution after A&P | 701 | 48.0% | 659 | 47.0% | (43) | -6% | 21 | 3% | 18 | 3% | (81) | -12% | ||||||
| Profit from recurring operations | 486 | 33.3% | 459 | 32.7% | (27) | -6% | 27 | 5% | 11 | 2% | (65) | -13% | ||||||
| Asia Rest of the World | ||||||||||||||||||
| (€ millions) | H1 FY20 | H1 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) | 2,415 | 100.0% | 2,127 | 100.0% | (288) | -12% | (148) | -6% | 1 | 0% | (140) | -6% | ||||||
| Gross margin after logistics costs | 1,442 | 59.7% | 1,232 | 57.9% | (211) | -15% | (120) | -8% | (3) | 0% | (87) | -6% | ||||||
| Advertising promotion | (341) | 14.1% | (291) | 13.7% | 50 | -15% | 35 | -10% | 0 | 0% | 15 | -4% | ||||||
| Contribution after A&P | 1,101 | 45.6% | 940 | 44.2% | (161) | -15% | (86) | -8% | (3) | 0% | (72) | -7% | ||||||
| Profit from recurring operations | 833 | 34.5% | 674 | 31.7% | (159) | -19% | (95) | -11% | (4) | 0% | (60) | -7% | ||||||
| Europe | ||||||||||||||||||
| (€ millions) | H1 FY20 | H1 FY21 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) | 1,598 | 100.0% | 1,456 | 100.0% | (142) | -9% | (83) | -5% | (8) | 0% | (52) | -3% | ||||||
| Gross margin after logistics costs | 991 | 62.0% | 881 | 60.5% | (110) | -11% | (71) | -7% | (2) | 0% | (37) | -4% | ||||||
| Advertising promotion | (216) | 13.5% | (164) | 11.3% | 52 | -24% | 49 | -23% | (1) | 0% | 3 | -2% | ||||||
| Contribution after A&P | 775 | 48.5% | 717 | 49.2% | (58) | -7% | (22) | -3% | (2) | 0% | (34) | -4% | ||||||
| Profit from recurring operations | 468 | 29.3% | 461 | 31.7% | (7) | -1% | 26 | 5% | (3) | -1% | (30) | -6% | ||||||
Note: Bulk Spirits are allocated by Region according to the Regions' weight in the Group
Foreign Exchange Impact
| Forex impact H1 FY21 (€ millions) | Average rates evolution | On Net Sales | On Profit from Recurring Operations | |||||||
| H1 FY20 | H1 FY21 | |||||||||
| US dollar | USD | 1.11 | 1.18 | 6.5% | (79) | (40) | ||||
| Russian rouble | RUB | 71.19 | 88.61 | 24.5% | (33) | (24) | ||||
| Turkish Lira | TRL | 6.36 | 8.94 | 40.5% | (20) | (20) | ||||
| Indian rupee | INR | 78.59 | 87.48 | 11.3% | (59) | (18) | ||||
| Chinese yuan | CNY | 7.80 | 7.99 | 2.5% | (17) | (12) | ||||
| Pound sterling | GBP | 0.88 | 0.90 | 2.6% | (5) | 4 | ||||
| Other | (106) | (46) | ||||||||
| Total | (320) | (155) | ||||||||
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 | +10 |
| Financial expenses | (2) |
| Pre-tax profit from recurring operations | +9 |
| Impact on the balance sheet | (€ millions) |
| Increase/(decrease) in net debt | +38 |
| (1) Full-year effect | |
Balance Sheet
| Assets | 30/06/2020 | 12/31/2020 |
| (€ millions) | ||
| (Net book value) | ||
| Non-current assets | ||
| Intangible assets and goodwill | 16,576 | 15,953 |
| Tangible assets and other assets | 3,699 | 3,867 |
| Deferred tax assets | 1,678 | 1,578 |
| Total non-current assets | 21,953 | 21,398 |
| Current assets | ||
| Inventories | 6,167 | 6,139 |
| aged work-in-progress | 5,084 | 5,135 |
| non-aged work-in-progress | 76 | 72 |
| other inventories | 1,006 | 932 |
| Receivables (*) | 906 | 1,829 |
| Trade receivables | 862 | 1,758 |
| Other trade receivables | 44 | 70 |
| Other current assets | 323 | 299 |
| Other operating current assets | 317 | 293 |
| Tangible/intangible current assets | 6 | 5 |
| Tax receivable | 142 | 133 |
| Cash and cash equivalents and current derivatives | 1,947 | 1,964 |
| Total current assets | 9,485 | 10,363 |
| Assets held for sale | 87 | 11 |
| Total assets | 31,525 | 31,772 |
| (*) after disposals of receivables of: | 513 | 750 |
| Liabilities and shareholders' equity | 30/06/2020 | 12/31/2020 |
| (€ millions) | ||
| Group Shareholders' equity | 13,968 | 14,435 |
| Non-controlling interests | 243 | 244 |
| of which profit attributable to non-controlling interests | 21 | 18 |
| Total Shareholders' equity | 14,211 | 14,679 |
| Non-current provisions and deferred tax liabilities | 3,511 | 3,424 |
| Bonds non-current | 8,599 | 8,680 |
| Lease liabilities non current | 433 | 409 |
| Non-current financial liabilities and derivative instruments | 192 | 82 |
| Total non-current liabilities | 12,735 | 12,595 |
| Current provisions | 222 | 187 |
| Operating payables | 1,877 | 2,345 |
| Other operating payables | 1,016 | 753 |
| of which other operating payables | 633 | 704 |
| of which tangible/intangible current payables | 383 | 49 |
| Tax payable | 232 | 349 |
| Bonds current | 723 | 237 |
| Lease liabilities current | 88 | 103 |
| Current financial liabilities and derivatives | 404 | 523 |
| Total current liabilities | 4,563 | 4,497 |
| Liabilities held for sale | 16 | 0 |
| Total liabilities and shareholders' equity | 31,525 | 31,772 |
Analysis of Working Capital Requirement
| (€ millions) | June 2019 | December 2019 | June 2020 | December 2020 | H1 FY20 WC change* | H1 FY21 WC change* | |
| Aged work in progress | 4,788 | 5,047 | 5,084 | 5,135 | 123 | 67 | |
| Advances to suppliers for wine and ageing spirits | 12 | 13 | 19 | 10 | 1 | (8) | |
| Payables on wine and ageing spirits | (105) | (182) | (108) | (161) | (77) | (47) | |
| Net aged work in progress | 4,695 | 4,878 | 4,995 | 4,984 | 47 | 11 | |
| Trade receivables before factoring/securitization | 1,842 | 2,928 | 1,375 | 2,508 | 1,070 | 1,173 | |
| Advances from customers | (24) | (17) | (38) | (18) | 7 | 19 | |
| Other receivables | 338 | 340 | 343 | 354 | (20) | 27 | |
| Other inventories | 889 | 923 | 1,006 | 932 | 15 | (62) | |
| Non-aged work in progress | 79 | 76 | 76 | 72 | (3) | (2) | |
| Trade payables and other | (2,717) | (2,951) | (2,364) | (2,870) | (206) | (554) | |
| Gross operating working capital | 405 | 1,299 | 398 | 978 | 864 | 601 | |
| Factoring/Securitization impact | (674) | (827) | (513) | (750) | (143) | (246) | |
| Net Operating Working Capital | (269) | 472 | (115) | 227 | 721 | 355 | |
| Net Working Capital | 4,427 | 5,350 | 4,879 | 5,211 | 768 | 366 | |
| * at average rates | Of which recurring variation | 763 | 350 | ||||
| Of which non recurring variation | 5 | 16 | |||||
Net Debt
| (€ millions) | 30/06/2020 | 12/31/2020 | ||||
| Current | Non-current | Total | Current | Non-current | Total | |
| Bonds | 723 | 8,599 | 9,322 | 237 | 8,680 | 8,917 |
| Syndicated loan | ||||||
| Commercial paper | 299 | 299 | 232 | 232 | ||
| Other loans and long-term debts | 81 | 192 | 273 | 275 | 82 | 357 |
| Other financial liabilities | 380 | 192 | 572 | 507 | 82 | 589 |
| Gross Financial debt | 1,103 | 8,791 | 9,894 | 744 | 8,762 | 9,506 |
| Fair value hedge derivatives assets | (3) | (40) | (44) | (30) | (30) | |
| Fair value hedge derivatives liabilities | ||||||
| Fair value hedge derivatives | (3) | (40) | (44) |
| (30) | (30) |
| Net investment hedge derivatives assets | (13) | (13) | (53) | (53) | ||
| Net investment hedge derivatives liabilities | ||||||
| Net investment hedge derivatives |
| (13) | (13) |
| (53) | (53) |
| FINANCIAL DEBT AFTER HEDGING | 1,100 | 8,737 | 9,837 | 744 | 8,679 | 9,423 |
| Cash and cash equivalents | (1,935) |
| (1,935) | (1,955) |
| (1,955) |
| NET FINANCIAL DEBT EXCLUDING LEASE DEBT | (835) | 8,737 | 7,902 | (1,212) | 8,679 | 7,468 |
| Lease Debt | 88 | 433 | 522 | 103 | 409 | 513 |
| NET FINANCIAL DEBT | (747) | 9,171 | 8,424 | (1,108) | 9,089 | 7,980 |
Change in Net Debt
| (€ millions) | 12/31/2019 | 12/31/2020 |
| Operating profit | 1,636 | 1,534 |
| Depreciation and amortisation | 174 | 179 |
| Net change in impairment of goodwill, PPE and intangible assets | 8 | 6 |
| Net change in provisions | 75 | (31) |
| Changes in fair value on commercial derivatives, biological assets and investments | (3) | (5) |
| Net (gain)/loss on disposal of assets | (7) | 2 |
| Share-based payments | 21 | 15 |
| Self-financing capacity before interest and tax | 1,903 | 1,699 |
| Decrease (increase) in working capital requirements | (768) | (364) |
| Net interest and tax payments | (401) | (347) |
| Net acquisitions of non financial assets and others | (164) | (153) |
| Free Cash Flow | 570 | 835 |
| of which recurring Free Cash Flow | 627 | 995 |
| Net acquitions of financial assets and activities and others | (540) | (33) |
| Dividends paid | (843) | (699) |
| (Acquisition) Disposal of treasury shares and others | (228) | (25) |
| Decrease (increase) in net debt (before currency translation adjustments) | (1,041) | 78 |
| Foreign currency translation adjustment | (36) | 406 |
| Non cash impact on lease liabilities | (531) | (40) |
| Decrease (increase) in net debt (after currency translation adjustments and IFRS 16 non cash impacts) | (1,608) | 443 |
| Initial net debt | (6,620) | (8,424) |
| Final net debt | (8,228) | (7,980) |
Net Debt Maturity at 31 December 2020
billions
[Missing charts are available on the original document and on www.pernod-ricard.com]
Strong liquidity position at c. €5,3bn as of 31st December, of which €3.4bn undrawn credit lines
Gross debt after hedging at 31st December 2020 (excluding lease liabilities):
- 5% floating rate and 95% fixed rate
- 58% in EUR and 41% in USD
FY21 maturity includes US$201m reimbursed at maturity on 26th January 2021
Bond details at 31 December 2020
| 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 | 201 m | Libor 6m spread | 1/26/2016 | 1/26/2021 |
1,650 m o/w: | 1/12/2012 | |||
800 m | 4.250% | 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% | 10/1/2020 | 4/1/2028 | |
900 m | 1.625% | 4/1/2031 | ||
500 m | 2.750% | 10/1/2050 |
Note: US$201m reimbursed at maturity on 26th January 2021
Net Debt EBITDA ratio evolution
Closing rate | Average rate(1) | ||
| EUR/USD rate Jun FY20 -> Dec FY21 | 1.12 -> 1.23 | 1.11 -> 1.14 | |
| Ratio at 30/06/2020 | 3.2 | 3.2 | |
| EBITDA cash generation excl. Group structure effect(2) and forex impacts | 0.0 | 0.0 | |
| Group structure(2) and forex impacts | 0.1 | 0.2 | |
| Ratio at 31/12/2020 | 3.3 | 3.4 (3) |
| (1) Last-twelve-month rate |
| (2) Including IFRS16 impact |
| (3) Syndicated credit leverage ratio restated from IFRS16 is 3.3 |
Diluted Earnings Per Share (EPS) calculation
| (x 1,000) | H1 FY20 | H1 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 | 262,315 |
| Weighted average number of treasury shares (pro rata temporis) | (1,462) | (1,654) |
| Dilutive impact of stock options and performance shares | 1,303 | 816 |
| Number of shares used in diluted EPS calculation | 265,263 | 261,478 |
| (€ millions and €/share) | H1 FY20 | H1 FY21 | reported |
Group share of net profit from recurring operations | 1,216 | 1,087 | -10.6% |
| Diluted net earnings per share from recurring operations | 4.58 | 4.16 | -9.3% |
Upcoming Communications
Date1 | Event |
9 March 2021, 3pm CET | North America conference call |
22 April 2021, 9am CET | Q3 FY21 Sales conference call |
25 May 2021, 3pm CET | Sustainability Responsibility conference call |
22 June 2021 | Asia conference call |
1 The above dates are indicative and are liable to change
1 PRO: Profit from Recurring Operations
2 Recurring Operating Cash Flow PRO
3 Based on average EUR/USD rates: 1.14 in calendar year 2020
View source version on businesswire.com: https://www.businesswire.com/news/home/20210210006042/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
Alison Donohoe Press Relations Manager +33 (0) 1 70 93 16 23
Emmanuel Vouin Press Relations Manager +33 (0) 1 70 93 16 34
