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  • 7.5 %
    Share capital 30/06/2017
  • 2,332 EUR M
    Value of the stake 30/06/2017
  • 10.9 %
    Voting rights 30/06/2017
  • 2
    Number of representatives in statutory bodies 30/06/2017
Investment Year 2006 Investment history

Since its inception in 1975, Pernod Ricard has built up the most premium portfolio in the industry and has become the world co-leader in the Wine & Spirits market through significant organic growth and numerous acquisitions, including Seagram in 2001, Allied Domecq in 2005 and Vin & Spirit in 2008. This portfolio includes in particular 13 strategic international brands, 15 strategic local brands and 4 premium wine brands, produced and distributed by the group through its own worldwide distribution network.

 

Investment case

The spirits market is supported by favourable long-term trends, in particular:

  • expanding urban population.
  • growing market share compared to beer and wine.
  • upmarket move by consumers.

Pernod Ricard has a solid growth and profitability profile:

  • global co-leader with one of the industry’s most complete brand portfolios.
  • systematic upmarket move thanks to its superior-quality and innovative products.
  • numerous high-potential brands such as Jameson, Absolut and the Indian whiskies.
  • leading positions in categories such as whiskey, rum and luxury Cognac that outperform the market and enjoy high barriers to entry, for example guarantee of origin requirements and the need to set aside stocks for ageing.

Half year results 2016/17

  • Half-year sales (July - December 2016) stood at EUR 5,061 million, growing organically by 4%. The strategic international brands increased strongly while the premium wines and local brands experienced limited growth.
  • Profit from recurring operations also grew organically by 4% to EUR 1,500 million, with an operating margin increasing by 60 bps to 29.6%.
  • Net profit from recurring operations rose by 5% as a result of the increase in profit from recurring operations and the decrease in the average cost of debt, partially offset by a rise in the average tax rate.
  • Net debt increased by EUR 237 million in comparison with 30 June 2016 to EUR 8,953 million, due to the payment of the dividend and a negative currency effect.

Outlook for 2017

Pernod Ricard closes its financial year on 30 June and will publish its results on 31 August 2017. At the publication of the nine-month sales (3% of published growth and 4% of organic growth), the group’s management reiterated its objective of growth of the profit from recurring operations ranging between 2% and 4% for the full financial year.

Governance

Board of Directors (2/14*) Strategic Committee (1/6*) Audit Committee (1/3*) Compensation Committee (1/5*)
Member Member Member
Member Member
* Number of GBL's representatives in statutory bodies in relation to the total number of members