Pernod Ricard: FY20 Full-year Sales and Results
Regulatory News:
Press release - PARIS, 2 September 2020
Pernod Ricard (Paris:RI):
SALES
Sales for FY20 totalled €8,448m, with an organic decline of -9.5% (-8.0% reported), with a favourable FX impact linked mainly to USD appreciation vs. Euro.
Sales growth in H1 was robust but H2 was impacted by Covid-19. For FY20, the trends were:
- Americas: -6%, with good resilience in USA2 and Canada in slight growth, but double-digit decline in Latin America and Travel Retail
- Asia-RoW: -14%, driven mainly by China, India and Travel Retail, against high basis of comparison
- Europe: -6%, overall good resilience with Germany, UK and Eastern Europe growing, partially offsetting declines in Travel Retail, Spain and France.
Key categories were impacted by the pandemic, but Specialty Brands performed well:
- Strategic International Brands: -10%, after broad-based growth in H1, mainly driven by Martell, Chivas Regal, Absolut and Ballantine’s
- Strategic Local Brands: -9%, in modest growth at the end of 9M, but strong decline in Q4, mainly due to Seagram’s Indian whiskies, on high comparison basis
- Specialty Brands: +7%, despite Covid-19, thanks to more favourable geographic exposure, with dynamic growth of Lillet, Altos and Redbreast
- Strategic Wines: -4%, due mainly to Jacob’s Creek, despite growth of Campo Viejo.
Q4 Sales were €1,238m, with -36.2% organic decline (-37.9% reported), with a significant impact of Covid-19 throughout the world, particularly for Travel Retail and the On-trade. There was better than expected resilience of the Off-trade, notably in USA and Europe.
H2 saw the implementation of Covid-19 crisis management, while pursuing the long-term transformation agenda:
- Priority given to health and safety of employees and business partners
- Sound inventory position at June end, thanks to robust demand management and supply chain continuity
- Active resource management and strong cost mitigation to adjust to Covid-19 context
- Continued roll-out of 2030 Sustainability & Responsibility roadmap, while developing new measures to support stakeholders during crisis
- Implementation of digital transformation and completion of Reconquer project to resume growth in France and reorganisation of Wine business to reignite its performance.
During FY20, Pernod Ricard gained or held market share in its Top 10 markets.
RESULTS
H1 was solid with +4.3% organic PRO, on a high basis of comparison (+12.8% in H1 FY19), demonstrating the success of the Transform & Accelerate strategic plan.
Due to the Covid-19 impact in H2, FY20 PRO was €2,260m, an organic decline of -13.7% and -12.4% reported.
The FY20 organic PRO margin erosion was limited to -131bps, with:
- Resilient pricing on Strategic brands: +1%
-
Gross margin contracting -140bps, driven by:
- Adverse mix linked to Strategic International Brands, especially Martell and Chivas Regal
- Higher Cost of Goods mainly due to agave price pressure, glass and GNS in India, lower fixed cost absorption, only partially offset by operational excellence savings
- A&P: +88bps, thanks to very strong mitigation plan in H2
- Structure costs: -79bps, with topline decline reducing fixed cost absorption, despite strong cost discipline.
The FY20 corporate income tax rate on recurring items was c.24% vs. 26% in FY19.
Group share of Net PRO was €1,439m, -13% reported vs. FY19 and the Group share of Net profit €329m, -77% reported, impacted by €1bn asset impairment triggered by Covid-19, in particular on Absolut (€912m gross; €702m net of tax.)
FREE CASH FLOW AND DEBT
Recurring Free Cash Flow was €1,003m, reflecting the impact of Covid-19 on the business.
The average Cost of debt stood at 3.6% vs. 3.9% in FY19. Low rates on new bond financing not fully reflected in full year FY20.
Cash was actively managed and the liquidity position reinforced, thanks to bond issuances and an additional credit line. Liquidity at 30 June 2020 stood at €5.3bn, of which €3.4bn credit lines was undrawn.
Active portfolio management continued throughout the year, with the Italicus and KI NO BI transactions and the disposal of Café de Paris in H2.
Net debt increased by €1,804m3 vs. 30 June 2019 to €8,424m due to lower Free Cash Flow, an increase in the M&A cash-out, a €523m Share buyback (prior to suspension of the programme in April), an increase in the dividend payout to c.50% (vs. 41% in FY19), additional lease liabilities following the IFRS16 norm application and a negative translation adjustment mainly due to EUR/USD evolution.
The Net Debt/EBITDA ratio at average rates4 was 3.2x at 30 June 2020.
A dividend of €2.66 is proposed for the Annual General Meeting of 27 November 2020.
Alexandre Ricard, Chairman and Chief Executive Officer, stated,
“The Group has proven very resilient through FY20 and demonstrated its agility and ability to keep its supply chains operational, control costs and manage cash. I would like to take this opportunity to praise the exceptional commitment of our teams during this difficult time.
For FY21, Pernod Ricard expects continued uncertainty and volatility, in particular relating to sanitary conditions and their impact on social gatherings, as well as challenging economic conditions. We anticipate a prolonged downturn in Travel Retail but resilience of the Off-trade in the USA and Europe and sequential improvement in China, India and the On-trade globally.
We will stay the strategic course and accelerate our digital transformation while maintaining strict discipline, with clear, purpose-based investment decisions. We will harness our agility to adjust fast to capture new opportunities. Thanks to our solid fundamentals, our teams and our brand portfolio, I am confident that Pernod Ricard will emerge 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 FY20 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 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 index.
__________________________
1 PRO: Profit from Recurring Operations
2 Sell-out at +2% (internal estimate)
3 Including €603m additional lease liabilities pursuant to IFRS16 norm application
4 Based on average EUR/USD rates: 1.11 in FY20
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
|
|
Organic Sales growth
|
|
Volumes |
|
Price/mix |
||
|
(in 9Lcs millions) |
|
|
|
|||||
| Absolut |
10.3 |
-11% |
-7% |
-4% |
||||
| Chivas Regal |
3.7 |
-17% |
-19% |
2% |
||||
| Ballantine's |
7.2 |
-8% |
-5% |
-3% |
||||
| Ricard |
4.2 |
-6% |
-6% |
-1% |
||||
| Jameson |
7.6 |
-1% |
-2% |
0% |
||||
| Havana Club |
4.2 |
-6% |
-8% |
2% |
||||
| Malibu |
3.9 |
5% |
5% |
0% |
||||
| Beefeater |
3.1 |
-7% |
-4% |
-3% |
||||
| Martell |
2.0 |
-20% |
-24% |
5% |
||||
| The Glenlivet |
1.2 |
2% |
-3% |
4% |
||||
| Royal Salute |
0.2 |
-2% |
-7% |
5% |
||||
| Mumm |
0.6 |
-13% |
-13% |
0% |
||||
| Perrier-Jouët |
0.3 |
-12% |
-21% |
8% |
||||
| Strategic International Brands |
48.3 |
-10% |
-7% |
-3% |
Sales Analysis by Period and Region
|
Net Sales
|
|
FY19 |
|
FY20 |
|
Change |
|
Organic Growth |
|
Group Structure |
|
Forex impact |
||||||
| Americas |
2,545 |
27.7% |
2,449 |
29.0% |
(96) |
-4% |
(161) |
-6% |
43 |
2% |
23 |
1% |
||||||
| Asia / Rest of World |
3,965 |
43.2% |
3,467 |
41.0% |
(498) |
-13% |
(547) |
-14% |
27 |
1% |
21 |
1% |
||||||
| Europe |
2,672 |
29.1% |
2,532 |
30.0% |
(140) |
-5% |
(159) |
-6% |
15 |
1% |
4 |
0% |
||||||
| World |
9,182 |
100.0% |
8,448 |
100.0% |
(734) |
-8% |
(867) |
-10% |
85 |
1% |
47 |
1% |
||||||
|
Net Sales
|
|
Q4 FY19 |
|
Q4 FY20 |
|
Change |
|
Organic Growth |
|
Group Structure |
|
Forex impact |
||||||
| Americas |
589 |
29.5% |
411 |
33.2% |
(178) |
-30% |
(176) |
-31% |
14 |
2% |
(16) |
-3% |
||||||
| Asia / Rest of World |
777 |
39.0% |
368 |
29.8% |
(409) |
-53% |
(376) |
-48% |
4 |
1% |
(37) |
-5% |
||||||
| Europe |
628 |
31.5% |
458 |
37.0% |
(170) |
-27% |
(164) |
-26% |
5 |
1% |
(11) |
-2% |
||||||
| World |
1,994 |
100.0% |
1,238 |
100.0% |
(756) |
-38% |
(716) |
-36% |
24 |
1% |
(65) |
-3% |
||||||
|
Net Sales
|
|
H2 FY19 |
|
H2 FY20 |
|
Change |
|
Organic Growth |
|
Group Structure |
|
Forex impact |
||||||
| Americas |
1,155 |
28.9% |
988 |
33.2% |
(167) |
-14% |
(183) |
-16% |
28 |
2% |
(12) |
-1% |
||||||
| Asia / Rest of World |
1,699 |
42.5% |
1,052 |
35.4% |
(647) |
-38% |
(615) |
-36% |
11 |
1% |
(43) |
-3% |
||||||
| Europe |
1,143 |
28.6% |
934 |
31.4% |
(209) |
-18% |
(206) |
-18% |
8 |
1% |
(11) |
-1% |
||||||
| World |
3,997 |
100.0% |
2,974 |
100.0% |
(1,023) |
-26% |
(1,004) |
-25% |
47 |
1% |
(66) |
-2% |
||||||
|
Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group |
Summary Consolidated Income Statement
| (€ millions) |
FY19 |
FY20 |
Change |
| Net sales |
9,182 |
8,448 |
-8% |
| Gross Margin after logistics costs |
5,648 |
5,086 |
-10% |
| Advertising and promotion expenses |
(1,512) |
(1,327) |
-12% |
| Contribution after A&P expenditure |
4,137 |
3,759 |
-9% |
| Structure costs |
(1,556) |
(1,499) |
-4% |
| Profit from recurring operations |
2,581 |
2,260 |
-12% |
| Financial income/(expense) from recurring operations |
(314) |
(328) |
5% |
| Corporate income tax on items from recurring operations |
(586) |
(468) |
-20% |
| Net profit from discontinued operations, non-controlling interests and share of net income from associates |
(27) |
(25) |
-8% |
| Group share of net profit from recurring operations |
1,654 |
1,439 |
-13% |
| Other operating income & expenses |
(206) |
(1,283) |
NA |
| Financial income/(expense) from non-recurring operations |
3 |
(38) |
NA |
| Corporate income tax on items from non recurring operations |
4 |
210 |
NA |
| Group share of net profit |
1,455 |
329 |
-77% |
| Non-controlling interests |
27 |
21 |
-22% |
| Net profit |
1,482 |
350 |
-76% |
Profit from Recurring Operations by Region
| World | ||||||||||||||||||
| (€ millions) | FY19 | FY20 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) |
9,182 |
100.0% |
8,448 |
100.0% |
(734) |
-8% |
(867) |
-10% |
85 |
1% |
47 |
1% |
||||||
| Gross margin after logistics costs |
5,648 |
61.5% |
5,086 |
60.2% |
(562) |
-10% |
(653) |
-12% |
44 |
1% |
47 |
1% |
||||||
| Advertising & promotion |
(1,512) |
16.5% |
(1,327) |
15.7% |
184 |
-12% |
216 |
-14% |
(24) |
2% |
(7) |
0% |
||||||
| Contribution after A&P |
4,137 |
45.1% |
3,759 |
44.5% |
(378) |
-9% |
(437) |
-11% |
19 |
0% |
40 |
1% |
||||||
| Profit from recurring operations |
2,581 |
28.1% |
2,260 |
26.8% |
(320) |
-12% |
(355) |
-14% |
(2) |
0% |
36 |
1% |
||||||
| Americas | ||||||||||||||||||
| (€ millions) | FY19 | FY20 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) |
2,545 |
100.0% |
2,449 |
100.0% |
(96) |
-4% |
(161) |
-6% |
43 |
2% |
23 |
1% |
||||||
| Gross margin after logistics costs |
1,698 |
66.7% |
1,599 |
65.3% |
(98) |
-6% |
(156) |
-9% |
29 |
2% |
29 |
2% |
||||||
| Advertising & promotion |
(504) |
19.8% |
(461) |
18.8% |
43 |
-9% |
58 |
-12% |
(11) |
2% |
(4) |
1% |
||||||
| Contribution after A&P |
1,193 |
46.9% |
1,138 |
46.5% |
(55) |
-5% |
(98) |
-8% |
17 |
1% |
26 |
2% |
||||||
| Profit from recurring operations |
785 |
30.9% |
718 |
29.3% |
(67) |
-9% |
(101) |
-13% |
9 |
1% |
25 |
3% |
||||||
| Asia / Rest of the World | ||||||||||||||||||
| (€ millions) | FY19 | FY20 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) |
3,965 |
100.0% |
3,467 |
100.0% |
(498) |
-13% |
(547) |
-14% |
27 |
1% |
21 |
1% |
||||||
| Gross margin after logistics costs |
2,308 |
58.2% |
1,969 |
56.8% |
(339) |
-15% |
(365) |
-16% |
10 |
0% |
16 |
1% |
||||||
| Advertising & promotion |
(592) |
14.9% |
(517) |
14.9% |
75 |
-13% |
87 |
-15% |
(9) |
1% |
(3) |
1% |
||||||
| Contribution after A&P |
1,716 |
43.3% |
1,452 |
41.9% |
(264) |
-15% |
(279) |
-16% |
1 |
0% |
13 |
1% |
||||||
| Profit from recurring operations |
1,179 |
29.7% |
938 |
27.0% |
(241) |
-20% |
(247) |
-21% |
(6) |
-1% |
12 |
1% |
||||||
| Europe | ||||||||||||||||||
| (€ millions) | FY19 | FY20 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||
| Net sales (Excl. T&D) |
2,672 |
100.0% |
2,532 |
100.0% |
(140) |
-5% |
(159) |
-6% |
15 |
1% |
4 |
0% |
||||||
| Gross margin after logistics costs |
1,643 |
61.5% |
1,519 |
60.0% |
(124) |
-8% |
(131) |
-8% |
5 |
0% |
2 |
0% |
||||||
| Advertising & promotion |
(415) |
15.5% |
(349) |
13.8% |
66 |
-16% |
71 |
-17% |
(4) |
1% |
(0) |
0% |
||||||
| Contribution after A&P |
1,228 |
45.9% |
1,169 |
46.2% |
(58) |
-5% |
(60) |
-5% |
1 |
0% |
1 |
0% |
||||||
| Profit from recurring operations |
617 |
23.1% |
605 |
23.9% |
(12) |
-2% |
(7) |
-1% |
(5) |
-1% |
(1) |
0% |
||||||
|
Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group |
Foreign Exchange Impact
| Forex impact FY20 (€ millions) |
Average rates evolution |
On Net Sales |
On Profit from Recurring Operations |
|||||||
|
FY19 |
FY20 |
% |
||||||||
| US dollar | USD |
1.14 |
1.11 |
-3.1% |
70 |
35 |
||||
| Chinese yuan | CNY |
7.79 |
7.77 |
-0.1% |
1 |
1 |
||||
| Indian rupee | INR |
80.52 |
80.13 |
-0.5% |
5 |
2 |
||||
| Pound sterling | GBP |
0.88 |
0.88 |
-0.5% |
1 |
3 |
||||
| Other |
(30) |
(4) |
||||||||
| Total |
47 |
36 |
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 |
+12 |
| Financial expenses |
(3) |
| Pre-tax profit from recurring operations | +9 |
| Impact on the balance sheet | (€ millions) |
| Increase/(decrease) in net debt | +48 |
| (1) Full-year effect | |
Balance Sheet
| Assets | 30/06/2019 | 30/06/2020 |
| (€ millions) | ||
| (Net book value) | ||
| Non-current assets | ||
| Intangible assets and goodwill |
17,074 |
16,576 |
| Tangible assets and other assets |
4,002 |
3,699 |
| Deferred tax assets |
1,590 |
1,678 |
| Total non-current assets |
22,666 |
21,953 |
| Current assets | ||
| Inventories |
5,756 |
6,167 |
| aged work-in-progress |
4,788 |
5,084 |
| non-aged work-in-progress |
79 |
76 |
| other inventories |
889 |
1,006 |
| Receivables (*) |
1,226 |
906 |
| Trade receivables |
1,168 |
862 |
| Other trade receivables |
59 |
44 |
| Other current assets |
359 |
323 |
| Other operating current assets |
291 |
317 |
| Tangible/intangible current assets |
67 |
6 |
| Tax receivable |
105 |
142 |
| Cash and cash equivalents and current derivatives |
929 |
1,947 |
| Total current assets |
8,375 |
9,485 |
| Assets held for sale |
5 |
87 |
| Total assets |
31,045 |
31,525 |
| (*) after disposals of receivables of: |
674 |
513 |
| Liabilities and shareholders’ equity | 30/06/2019 restated* | 30/06/2020 |
| (€ millions) | ||
| Group Shareholders’ equity |
15,987 |
13,968 |
| Non-controlling interests |
195 |
243 |
| of which profit attributable to non-controlling interests |
27 |
21 |
| Total Shareholders’ equity |
16,182 |
14,211 |
| Non-current provisions and deferred tax liabilities |
3,584 |
3,511 |
| Bonds non-current |
6,071 |
8,599 |
| Lease liabilities - non-current |
- |
433 |
| Non-current financial liabilities and derivative instruments |
379 |
192 |
| Total non-current liabilities |
10,034 |
12,735 |
| Current provisions |
149 |
222 |
| Operating payables |
2,187 |
1,877 |
| Other operating payables |
1,058 |
1,016 |
| of which other operating payables |
660 |
633 |
| of which tangible/intangible current payables |
398 |
383 |
| Tax payable |
307 |
232 |
| Bonds - current |
944 |
723 |
| Lease liabilities - current |
- |
88 |
| Current financial liabilities and derivatives |
182 |
404 |
| Total current liabilities |
4,826 |
4,563 |
| Liabilities held for sale |
2 |
16 |
| Total liabilities and shareholders' equity |
31,045 |
31,525 |
* Opening positions of Group Balance Sheet Liabilities have been restated from impact of IFRIC 23 first application (uncertain tax positions reclassified from Non current provisions to Tax payable for €150m).
Analysis of Working Capital Requirement
| (€ millions) |
June
|
June
|
June
|
FY19 WC
|
FY20 WC
|
|
| Aged work in progress |
4,532 |
4,788 |
5,084 |
268 |
294 |
|
| Advances to suppliers for wine and ageing spirits |
10 |
12 |
19 |
2 |
7 |
|
| Payables on wine and ageing spirits |
(96) |
(105) |
(108) |
(11) |
(5) |
|
| Net aged work in progress |
4,447 |
4,695 |
4,995 |
259 |
296 |
|
| Trade receivables before factoring/securitization |
1,641 |
1,842 |
1,375 |
187 |
(434) |
|
| Advances from customers |
(6) |
(24) |
(38) |
(18) |
(14) |
|
| Other receivables |
353 |
338 |
343 |
24 |
12 |
|
| Other inventories |
869 |
889 |
1,006 |
15 |
121 |
|
| Non-aged work in progress |
71 |
79 |
76 |
2 |
(1) |
|
| Trade payables and other |
(2,471) |
(2,717) |
(2,364) |
(226) |
293 |
|
| Gross operating working capital |
457 |
405 |
398 |
(15) |
(24) |
|
| Factoring/Securitization impact |
(610) |
(674) |
(513) |
(63) |
161 |
|
| Net Operating Working Capital |
(153) |
(269) |
(115) |
(78) |
138 |
|
| Net Working Capital |
4,294 |
4,427 |
4,879 |
181 |
433 |
|
| * at average rates | Of which recurring variation |
201 |
450 |
|||
| Of which non recurring variation |
(21) |
(17) |
Net Debt
| (€ millions) | 30/06/2019 | 6/30/2020 | ||||
| Current | Non-current | Total | Current | Non-current | Total | |
| Bonds |
944 |
6,071 |
7,015 |
723 |
8,599 |
9,322 |
| Syndicated loan |
- |
- |
- |
- |
- |
- |
| Commercial paper |
- |
- |
- |
299 |
- |
299 |
| Other loans and long-term debts |
177 |
363 |
540 |
81 |
192 |
273 |
| Other financial liabilities |
177 |
363 |
540 |
380 |
192 |
572 |
| Gross Financial debt |
1,121 |
6,434 |
7,555 |
1,103 |
8,791 |
9,894 |
| Fair value hedge derivatives – assets |
- |
(13) |
(13) |
(3) |
(40) |
(44) |
| Fair value hedge derivatives – liabilities |
- |
2 |
2 |
- |
- |
- |
| Fair value hedge derivatives |
- |
(12) |
(12) |
(3) |
(40) |
(44) |
| Net investment hedge derivatives – assets |
- |
- |
- |
- |
(13) |
(13) |
| Net investment hedge derivatives – liabilities |
- |
- |
- |
- |
- |
- |
| Net investment hedge derivatives |
- |
- |
- |
- |
(13) |
(13) |
| Net asset hedging derivative instruments – assets |
- |
- |
- |
- |
- |
- |
| Net asset hedging derivative instruments – liabilities |
0 |
- |
0 |
- |
- |
- |
| Net asset hedging derivative instruments |
0 |
- |
0 |
- |
- |
- |
| FINANCIAL DEBT AFTER HEDGING |
1,121 |
6,422 |
7,543 |
1,100 |
8,737 |
9,837 |
| Cash and cash equivalents |
(923) |
- |
(923) |
(1,935) |
- |
(1,935) |
| NET FINANCIAL DEBT EXCLUDING LEASE DEBT |
198 |
6,422 |
6,620 |
(835) |
8,737 |
7,902 |
| Lease Debt |
- |
- |
- |
88 |
433 |
522 |
| NET FINANCIAL DEBT |
198 |
6,422 |
6,620 |
(747) |
9,171 |
8,424 |
Change in Net Debt
| (€ millions) |
30/06/2019 |
30/06/2020 |
|
Operating profit |
2,375 |
978 |
| Depreciation and amortisation |
226 |
350 |
| Net change in impairment of goodwill, PPE and intangible assets |
69 |
1,007 |
| Net change in provisions |
7 |
97 |
| Retreatment of contributions to pension plans acquired from Allied Domecq and others |
3 |
|
| Changes in fair value on commercial derivatives and biological assets |
(7) |
(3) |
| Net (gain)/loss on disposal of assets |
0 |
(27) |
| Share-based payments |
40 |
23 |
| Self-financing capacity before interest and tax (1) |
2,714 |
2,423 |
| Decrease / (increase) in working capital requirements |
(181) |
(433) |
| Net interest and tax payments |
(829) |
(809) |
| Net acquisitions of non financial assets and others |
(338) |
(352) |
| Free Cash Flow (2) |
1,366 |
830 |
| of which recurring Free Cash Flow (3) |
1,477 |
1,003 |
| Net acquisitions of financial assets and activities, contributions to pension plans acquired from Allied Domecq and others |
(181) |
(587) |
| Dividends paid |
(645) |
(849) |
| (Acquisition) / Disposal of treasury shares and others |
(121) |
(526) |
| Decrease / (increase) in net debt (before currency translation adjustments) |
420 |
(1,132) |
| IFRS 15 opening adjustment |
16 |
|
| Foreign currency translation adjustment |
(94) |
(69) |
| Non cash impact on lease liabilities (4) |
(603) |
|
| Decrease / (increase) in net debt (after currency translation adjustments and IFRS 16 non cash impacts) (5) |
342 |
(1,804) |
| Initial net debt |
(6,962) |
(6,620) |
| Final net debt |
(6,620) |
(8,424) |
| Note: IFRS16 impacts are: (1) +108M€ / (2) +98M€ / (3) +86M€ / (4) -603M€ / (5) -497M€ |
Net Debt Maturity at 30 June 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 30th June 2020, of which €3.4bn credit lines undrawn
Gross debt after hedging at 30 June 2020
- 14% floating rate and 86% fixed rate
- 52% in EUR and 49% in USD
Bond details
| Currency | Par value | Coupon | Issue date | Maturity date |
| EUR |
€ 650 m |
2.125% |
9/29/2014 |
9/27/2024 |
|
€ 500 m |
1.875% |
9/28/2015 |
9/28/2023 |
|
|
€ 600 m |
1.500% |
5/17/2016 |
5/18/2026 |
|
|
€ 1,500 m o/w: |
|
10/24/2019 |
|
|
|
€ 500 m |
0.000% |
10/24/2023 |
||
|
€ 500 m |
0.500% |
10/24/2027 |
||
|
€ 500 m |
0.875% |
10/24/2031 |
||
|
€ 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 |
||
|
|
|
|
|
|
| USD |
$ 500 m |
5.750% |
4/7/2011 |
4/7/2021 |
|
$ 1,500 m |
4.450% |
10/25/2011 |
1/15/2022 |
|
|
$ 1,650 m o/w: |
|
1/12/2012 |
|
|
|
$ 800 m at 10.5 years |
4.250% |
7/15/2022 |
||
|
$ 850 m at 30 years |
5.500% |
1/15/2042 |
||
|
$ 201 m |
Libor 6m + spread |
1/26/2016 |
1/26/2021 |
|
|
$ 600 m |
3.250% |
6/8/2016 |
6/8/2026 |
Net Debt / EBITDA ratio evolution
|
Closing rate |
Average rate(1) |
||
| EUR/USD rate Jun FY19 -> Jun FY20 |
1.14 -> 1.12 |
1.14 -> 1.11 |
|
| Ratio at 30/06/2019 |
2.3 |
2.3 |
|
| EBITDA & cash generation excl. Group structure effect(2) and forex impacts |
0.6 |
0.6 |
|
| Group structure(2) and forex impacts |
0.3 |
0.3 |
|
| Ratio at 30/06/2020 |
3.2 |
3.2 (3) |
|
| (1) Last-twelve-month rate | |||
| (2) Including IFRS16 impact | |||
| (3) Syndicated credit leverage ratio restated from IFRS16 is 3.1 |
Diluted EPS calculation
| (x 1,000) |
FY19 |
FY20 |
|
| Number of shares in issue at end of period |
265,422 |
|
265,422 |
| Weighted average number of shares in issue (pro rata temporis) |
265,422 |
|
265,422 |
| Weighted average number of treasury shares (pro rata temporis) |
(1,248) |
|
(2,564) |
| Dilutive impact of stock options and performance shares |
1,246 |
|
1,179 |
| Number of shares used in diluted EPS calculation |
265,420 |
|
264,037 |
| (€ millions and €/share) | FY19 | FY20 | reported ∆ |
||
| Group share of net profit from recurring operations |
1,654 |
|
1,439 |
|
-13.0% |
| Diluted net earnings per share from recurring operations |
6.23 |
|
5.45 |
|
-12.5% |
Note: 3.5m shares cancelled in July 2020 pursuant to share buy-back
Upcoming Communications
|
Date1 |
Event |
||
|
22 October 2020 |
Q1 FY21 Sales |
||
|
27 November 2020 |
Annual General Meeting |
||
|
11 February 2021 |
H1 FY21 Sales and Results |
1 The above dates are indicative and are liable to change
View source version on businesswire.com: https://www.businesswire.com/news/home/20200901006151/en/
Pernod-Ricard S.A. Stock
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