Pernod Ricard, the world´s number two player in Wines & Spirits holds a leading position globally
Share capital 30/09/2018
Value of the stake 30/09/2018
Voting rights 30/09/2018
Number of representatives in statutory bodies 30/09/2018
Since its inception in 1975, Pernod Ricard has built up the most premium portfolio in the industry and has become the world’s number two player in the Wine & Spirits market through organic growth and acquisitions, including Seagram in 2001, Allied Domecq in 2005 and Vin&Spirit in 2008. This portfolio includes notably 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.
Performance in 2017
In 2016/17, Pernod Ricard delivered a strong year with business accelerating, and is on track to deliver mid-term roadmap. The organic top line growth has reached 3.6%, getting closer to the mid-term objective of + 4% to + 5%. The profit from recurring operations (PRO) recorded a solid organic growth: + 3.3%, at the higher end of the annual guidance bracket of + 2% to + 4%, despite unexpected regulatory changes in India. The operating margin was up by 35bps thanks to foreign exchange impacts. The group’s share of net profit was up 13%, whilst cash flow generation and deleveraging improved significantly. Free cash flow increased by 22%, and 61% in two years, to historic high, supported by operational efficiency initiatives.
Deleveraging was significant with net debt/EBITDA ratio at 3.0x down 0.4x vs. FY16, and net debt down by EUR 0.9 billion to EUR 7.9 billion.
Furthermore, in 2016/17, there was:
- an increase in profit from recurring operations of 8% in the Americas, 1% in Asia/Rest of World and 1% in Europe;
- an improvement of the gross margin (+ 4%): the mix turned positive (mainly due to Jameson and Martell), pricing was still muted and costs of goods sold were tightly managed thanks to operational efficiency initiatives;
- a dividend per share of EUR 2.02, a 7% increase compared with the previous year. This represents a pay-out ratio of 36%, in line with the customary policy of cash distribution of approximately one-third of the group’s net profit from recurring operations.
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 smooth growth and profitability profile:
- Number two player worldwide 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
- Leading positions in categories such as whisky, rum and cognac
|Strategic Committee (1/6*)||Board of Directors (2/14*)||Audit Committee (1/3*)||Compensation Committee (1/4*)|