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Imagen Pernod Ricard closed its fiscal year with a profit decline of 13.7% to 1,027 million

Pernod Ricard closed its fiscal year with a profit decline of 13.7% to 1,027 million

Nota de Prensa

Paris - 28 August 2014 - Sales were adversely affected by one market, China (-23%):

  • Asia-RoW -4%; outside China +5%
  • marked improvement in Europe (+2%)
  • slowdown of growth in the Americas (+2%) due to the US and Travel Retail


The Top 14 declined 2% as a result of a slight reduction in volumes and unfavourable mix (decline of Martell in China). However, despite a more challenging business environment, pricing remained solid at +2%. The good performance of Key Local Brands (+4%) should be noted, supported by positive pricing. Mix was negative.

As a result of strict control of resources, the operating margin rate increased +52 bps in organic terms, the strongest increase in four years. As a result, profit from recurring operations recorded organic growth of +2% to € 2,056 million.

The foreign exchange impact was highly unfavourable (€-199 million on PRO, as announced). It had a significant impact on the reported change in profit from recurring operations (-8%).

The net financial expense from recurring operations improved by € 98 million due to a very significant reduction in the cost of debt to 4.6% (compared with 5.3% for the 2012/13 financial year).

Group share of net profit from recurring operations decreased by 3%. This decline was lower than the reported decrease in PRO, due to the sharp reduction in financial expenses and the stabilisation of the income tax rate. In organic terms, it grew +9%.

At the end of June, net debt had reduced by € 374 million to € 8.4 billion.  

As part of this communication, Pierre Pringuet, Chief Executive Officer of Pernod Ricard, stated: “Despite an environment that was more difficult than anticipated, we have delivered the guidance announced in February, proof of everyone’s commitment, which I would like to commend. We are seriously committed to the Allegro project: this operational efficiency project must enable us to maximise our future growth while generating a hard figure of €150 million of savings.”

Alexandre Ricard, Deputy CEO & Chief Operating Officer, added: “In this context which will remain challenging, we anticipate a gradual improvement in our sales growth, and we will increase the investment behind our brands and priority innovations in order to sustain long-term growth.”

Audit procedures on the consolidated financial statements have been carried out. The Statutory Auditors’ report will be issued following their review of the management report. 

A detailed presentation of sales and results for the 2013/14 financial year is available on our website: www.pernod-ricard.com

In line with its standard practice, Pernod Ricard will communicate earnings guidance for the current financial year as part of its Q1 2014/15 sales communication on 23 October 2014.

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 (formerly Montana), Campo Viejo and Graffigna 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 the NYSE Euronext exchange (Ticker: RI; ISIN code: FR0000120693) and is a member of the CAC 40 index.

Download the press release with appendices 

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