Pernod Ricard: FY20 Half-Year Sales and Results
Regulatory News:
Press release - Paris, 13 February 2020
Pernod Ricard (Paris:RI):
SALES
Sales for H1 FY20 totalled €5,474m, with organic growth of +2.7% and reported growth of +5.6%, with a favourable FX impact linked to USD and Emerging market currency appreciation vs. Euro.
Pernod Ricard delivered solid results in a challenging environment, with broad-based growth:
Diversified growth across Regions, with robust performance of Must-win markets USA, India and China, further enhanced by earlier Chinese New Year3 Dynamic performance of Strategic International Brands, in particular Jameson, Martell, The Glenlivet, Malibu, Ballantine’s, Royal Salute and Beefeater Continued strong pricing: +2% on Strategic brands Focus on operational excellence and resource allocation, driving strong organic improvement in PRO margin +51bps.We continued to roll-out the Transform & Accelerate 3-year strategic plan:
Implementation of 2030 Sustainability & Responsibility roadmap Launch of Reconquer project to resume growth in France and reorganisation of Wine business to reignite its performance Active portfolio management: completion of TX, Rabbit Hole and Castle Brands acquisitions.Sales growth was robust, with a very strong basis of comparison: +2.7% vs +7.8% in H1 FY19. The Must-win markets posted the following performance:
USA: +4%, good growth driven by Whiskies and Specialty brands China: +11%, strong H1 on a high comparison basis (H1 FY19 +28%), enhanced by earlier Chinese New Year3 India: +5% good H1 in a volatile context, with a high basis of comparison (H1 FY19 +24%) Travel Retail: robust Sell-out, but H1 FY20 impacted by shipment phasing.There was diversified growth throughout the Regions:
Americas +2%: good growth in USA partially offset by weaker Mexican market and phasing in Travel Retail Asia-RoW +3%: growth driven mainly by China and India, dampened by the transfer of Imperial Korea to a third-party distributor Europe +3%: strong growth with improving trends, driven by Germany, UK and Eastern Europe acceleration, but difficulties remaining in France.Q2 Sales were €2,991m, with +3.8% organic growth (+6.9% reported), following a soft Q1 FY20 (at +1%), and enhanced by earlier Chinese New Year.
RESULTS
H1 FY20 PRO was €1,788m, with organic growth of +4.3% and +8.1% reported. For full-year FY20, the FX impact on PRO is estimated at c. +€70m4.
The H1 organic PRO margin was up by +51bps, thanks to:
Strong pricing on Strategic brands: +2% Gross margin in slight decline -15bps, following particularly strong H1 FY19 (+71bps): Positive impact of earlier Chinese New Year but negative mix of India Cost of Goods headwinds (in particular agave and grain neutral spirit (GNS) in India) A&P: increase broadly in line with Sales, with strong arbitration and focus behind strategic priorities Structure: -2% thanks to strong discipline and favourable phasing (growth expected for full-year FY20) Positive FX impact of +€59m thanks mainly to USD (EUR/USD 1.11 in H1 FY20 vs. 1.15 in H1 FY19) and Emerging market currency appreciation vs. EuroThe H1 FY20 corporate income tax rate on recurring items was c.24%; the rate is expected at c. 25% for full-year FY20.
Group share of Net PRO was €1,216m, +10% reported vs. H1 FY19, thanks mainly to strong improvement in PRO.
Group share of Net profit was €1,032m, +1% reported vs. H1 FY19, despite strong improvement in PRO due mainly to non-recurring items.
FREE CASH FLOW AND DEBT
Free Cash Flow was €570m, while increasing Capex and the ageing stock inventory build, as expected.
Net debt increased by €1,608m5 vs. 30 June 2019 to €8,228m at 31 December 2019 due mainly to increased M&A cash-out, an increased dividend payment and the start of the share buy-back programme6 with €223m purchased in H1 FY20. In H2 FY20, the programme will continue, with a new clip of €300m maximum, to be executed by 30 June 2020.
The Net Debt/EBITDA ratio at average rates7 was 2.7x at 31 December 2019.
As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, declared, “H1 FY20 demonstrated solid growth and resilience of our business model. Our 3 year-plan Transform& Accelerate is driving success, as evidenced by the diversification of the sources of growth in terms of geographic footprint and categories, continued strong pricing and ultimately the improvement in operating leverage.
Looking to H2 FY20, the environment remains particularly uncertain from a geopolitical standpoint, with the additional pressure related to the COVID-19 outbreak. While we cannot currently predict the duration and extent of the impact, we remain confident in our strategy. Our first priority is to ensure the safety and wellbeing of our employees and business partners. I would like to praise the exemplary behaviour of our teams during this difficult time. We fully support their efforts, as well as those of the Chinese people and authorities to contain the epidemic.
Assuming a severe impact of COVID-19, mainly on Q3 FY20, we are at this stage providing a guidance of organic growth in Profit from Recurring Operations for full-year FY20 of +2% to +4% and will continue to closely monitor our environment. We will stay the strategic course and maintain priority investments in order to continue maximising long-term value creation.”
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 FY20 Sales and Results can be downloaded from our website: www.pernod-ricard.com
Audit procedures have been carried out on the half-year financial statements. The Statutory Auditors’ report will be issued following their review of the management report.
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.
1 PRO: Profit from Recurring Operations
2 Guidance given to market on 29 August 2019 of organic PRO growth between +5% and +7%
3 Chinese New Year: 25 January 2020 vs. 5 February 2019
4 Based on average FX rates projected on 11 February 2020, particularly a EUR/USD rate of 1.11
5 Including €531m of lease liability, pursuant to implementation of IFRS16 norm
6 of up to €1bn over FY20 and FY21, announced on August 29th, 2019
7 Based on average EUR/USD rates: 1.12 in 2019
About Pernod Ricard
Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales of €9,182 million in FY19. 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 over 160 markets, and by its own direct 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 three-year 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 roadmap supporting the United Nations Sustainable Development Goals (SDGs), “We bring 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 and is ranked No. 1 in Vigeo Eiris for the beverage sector. 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.
Appendices
Emerging Markets
Asia-Rest of World Americas Europe Algeria Mongolia Argentina Albania Angola Morocco Bolivia Armenia Cambodia Mozambique Brazil Azerbaijan Cameroon Myanmar 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 Malaysia Serbia UkraineStrategic International Brands’ organic Sales growth
Volumes
H1 FY20
Organic Sales growth
H1 FY20
Volumes
Price/mix
(in 9Lcs millions)
Absolut
6.3
-1%
1%
-2%
Chivas Regal2.6
-2%
-3%
1%
Ballantine's4.4
5%
3%
1%
Ricard2.4
-5%
-5%
0%
Jameson4.6
9%
9%
0%
Havana Club2.5
6%
0%
6%
Malibu2.0
13%
9%
4%
Beefeater1.9
12%
13%
-1%
Martell1.6
4%
-3%
8%
The Glenlivet0.7
15%
8%
6%
Royal Salute0.1
17%
12%
5%
Mumm0.5
-3%
-6%
3%
Perrier-Jouët0.2
1%
-12%
13%
Strategic International Brands29.8
4%
2%
2%
Sales Analysis by Period and Region
Net Sales(€ millions) H1 FY19 H1 FY20 Change Organic Growth Group Structure Forex impact Americas
1,389
26.8%
1,461
26.7%
72
5%
22
2%
15
1%
35
2%
Asia / Rest of World2,266
43.7%
2,415
44.1%
149
7%
68
3%
16
1%
64
3%
Europe1,530
29.5%
1,598
29.2%
69
4%
47
3%
7
0%
14
1%
World5,185
100.0%
5,474
100.0%
289
6%
137
3%
39
1%
113
2%
Net Sales(€ millions) Q1 FY19 Q1 FY20 Change Organic Growth Group Structure Forex impact Americas
636
26.6%
674
27.1%
37
6%
14
2%
2
0%
21
3%
Asia / Rest of World1,084
45.4%
1,116
44.9%
32
3%
(4)
0%
4
0%
32
3%
Europe667
27.9%
694
27.9%
27
4%
21
3%
2
0%
4
1%
World2,387
100.0%
2,483
100.0%
96
4%
31
1%
8
0%
57
2%
Net Sales(€ millions) Q2 FY19 Q2 FY20 Change Organic Growth Group Structure Forex impact Americas
753
26.9%
788
26.3%
34
5%
8
1%
13
2%
14
2%
Asia / Rest of World1,182
42.2%
1,299
43.4%
117
10%
73
6%
12
1%
32
3%
Europe863
30.8%
904
30.2%
42
5%
26
3%
5
1%
10
1%
World2,798
100.0%
2,991
100.0%
193
7%
106
4%
31
1%
56
2%
Summary Consolidated Income Statement
(€ millions) H1 FY19 H1 FY20 Change Net sales5,185
5,474
6%
Gross Margin after logistics costs3,239
3,419
6%
Advertising and promotion expenses(799)
(842)
5%
Contribution after A&P expenditure2,440
2,577
6%
Structure costs(786)
(789)
0%
Profit from recurring operations1,654
1,788
8%
Financial income/(expense) from recurring operations(157)
(164)
5%
Corporate income tax on items from recurring operations(379)
(392)
3%
Net profit from discontinued operations, non-controlling interests and share of net income from associates(13)
(15)
17%
Group share of net profit from recurring operations1,105
1,216
10%
Other operating income & expenses(66)
(152)
NA Financial income/(expense) from non-recurring operations1
(1)
NA Corporate income tax on items from non recurring operations(18)
(31)
NA Group share of net profit1,023
1,032
1%
Non-controlling interests14
14
4%
Net profit1,036
1,046
1%
Profit from Recurring Operations by Region
World (€ millions) H1 FY19 H1 FY20 Change Organic Growth Group Structure Forex impact Net sales (Excl. T&D)5,185
100.0%
5,474
100.0%
289
6%
137
3%
39
1%
113
2%
Gross margin after logistics costs3,239
62.5%
3,419
62.5%
180
6%
78
2%
20
1%
82
3%
Advertising & promotion(799)
15.4%
(842)
15.4%
(43)
5%
(21)
3%
(7)
1%
(15)
2%
Contribution after A&P2,440
47.1%
2,577
47.1%
136
6%
57
2%
13
1%
66
3%
Profit from recurring operations1,654
31.9%
1,788
32.7%
134
8%
71
4%
3
0%
59
4%
Americas (€ millions) H1 FY19 H1 FY20 Change Organic Growth Group Structure Forex impact Net sales (Excl. T&D)1,389
100.0%
1,461
100.0%
72
5%
22
2%
15
1%
35
2%
Gross margin after logistics costs942
67.8%
986
67.5%
44
5%
5
1%
11
1%
28
3%
Advertising & promotion(276)
19.8%
(285)
19.5%
(9)
3%
(1)
0%
(2)
1%
(6)
2%
Contribution after A&P666
48.0%
701
48.0%
35
5%
4
1%
9
1%
22
3%
Profit from recurring operations470
33.8%
486
33.3%
16
3%
(8)
-2%
5
1%
18
4%
Asia / Rest of the World (€ millions) H1 FY19 H1 FY20 Change Organic Growth Group Structure Forex impact Net sales (Excl. T&D)2,266
100.0%
2,415
100.0%
149
7%
68
3%
16
1%
64
3%
Gross margin after logistics costs1,353
59.7%
1,442
59.7%
89
7%
38
3%
6
0%
45
3%
Advertising & promotion(309)
13.6%
(341)
14.1%
(32)
10%
(20)
7%
(4)
1%
(8)
2%
Contribution after A&P1,044
46.1%
1,101
45.6%
57
5%
18
2%
2
0%
37
4%
Profit from recurring operations766
33.8%
833
34.5%
67
9%
36
5%
(2)
0%
33
4%
Europe (€ millions) H1 FY19 H1 FY20 Change Organic Growth Group Structure Forex impact Net sales (Excl. T&D)1,530
100.0%
1,598
100.0%
69
4%
47
3%
7
0%
14
1%
Gross margin after logistics costs944
61.7%
991
62.0%
46
5%
35
4%
3
0%
9
1%
Advertising & promotion(214)
14.0%
(216)
13.5%
(2)
1%
0
0%
(1)
0%
(1)
1%
Contribution after A&P730
47.7%
775
48.5%
45
6%
35
5%
2
0%
8
1%
Profit from recurring operations418
27.3%
468
29.3%
50
12%
43
10%
(0)
0%
7
2%
Foreign Exchange Impact
Forex impact H1 FY20
(€ millions)
Average rates evolution
On Net Sales
On Profit from
Recurring
Operations
H1 FY19
H1 FY20
%
US dollar USD1.15
1.11
-3.7%
50
29
Chinese yuan CNY7.91
7.80
-1.3%
8
6
Indian rupee INR81.93
78.59
-4.1%
25
8
Russian rouble RUB76.13
71.19
-6.5%
10
8
Other20
7
Total113
59
For full-year FY20, a positive FX impact on PRO of c. +€70m is expected1
Notes:
Impact on PRO includes strategic hedging on Forex
1. Based on average FX rates projected on 11 February 2020, particularly EUR/USD rate of 1.11
Sensitivity of profit and debt to EUR/USD exchange rate
Estimated impact of a 1% appreciation of the USD and linked currencies(1) Impact on the income statement(2)(€ millions)
Profit from recurring operations15
Financial expenses(1)
Pre-tax profit from recurring operations14
Impact on the balance sheet
(€ millions)
Increase/(decrease) in net debt+41
(1) CNY, HKD (2) Full-year effectBalance Sheet
Assets 30/06/2019 31/12/2019 (€ millions) (Net book value) Non-current assets Intangible assets and goodwill17,074
17,640
Tangible assets and other assets4,002
3,626
Deferred tax assets1,590
1,615
Total non-current assets22,665
22,882
Current assets Inventories5,756
6,046
aged work-in-progress4,788
5,047
non-aged work-in-progress79
76
other inventories889
923
Receivables (*)1,226
2,159
Trade receivables1,168
2,101
Other trade receivables59
58
Other current assets359
302
Other operating current assets291
295
Tangible/intangible current assets67
7
Tax receivable105
89
Cash and cash equivalents and current derivatives929
1,180
Total current assets8,375
9,776
Assets held for sale5
97
Total assets31,045
32,755
(*) after disposals of receivables of:674
827
Liabilities and shareholders’ equity
30/06/2019
restated*
31/12/2019
(€ millions)Group Shareholders’ equity
15,987
15,687
Non-controlling interests195
220
of which profit attributable to non-controlling interests27
12
Total Shareholders’ equity16,182
15,907
Non-current provisions and deferred tax liabilities3,584
3,619
Bonds non-current6,071
7,618
Lease liabilities - non-current-
424
Non-current financial liabilities and derivative instruments379
92
Total non-current liabilities10,034
11,753
Current provisions149
213
Operating payables2,187
2,429
Other operating payables1,058
770
of which other operating payables660
721
of which tangible/intangible current payables398
49
Tax payable307
389
Bonds - current944
948
Lease liabilities - current-
93
Current financial liabilities and derivatives182
240
Total current liabilities4,826
5,082
Liabilities held for sale2
14
Total liabilities and shareholders' equity31,045
32,755
Analysis of Working Capital Requirement
(€ millions)
June
2018
December
2018
June
2019
December
2019
H1 FY19 WC
change*
H1 FY20 WC
change*
4,532
4,581
4,788
5,047
64
123
Advances to suppliers for wine and ageing spirits10
29
12
13
19
1
Payables on wine and ageing spirits(96)
(172)
(105)
(182)
(77)
(77)
Net aged work in progress4,447
4,439
4,695
4,878
7
47
Trade receivables before factoring/securitization1,641
2,704
1,842
2,928
1,054
1,070
Advances from customers(6)
(6)
(24)
(17)
(1)
7
Other receivables353
305
338
340
(1)
(20)
Other inventories869
849
889
923
(16)
15
Non-aged work in progress71
84
79
76
11
(3)
Trade payables and other(2,471)
(2,719)
(2,717)
(2,951)
(238)
(206)
Gross operating working capital457
1,217
405
1,299
809
864
Factoring/Securitization impact(610)
(772)
(674)
(827)
(162)
(143)
Net Operating Working Capital(153)
445
(269)
472
648
721
Net Working Capital4,294
4,884
4,427
5,350
654
768
* at average rates Of which recurring variation651
763
Of which non recurring variation3
5
Net Debt
(€ millions)
30/06/2019
12/31/2019
Current
Non-current
Total
Current
Non-current
Total
Bonds944
6,071
7,015
948
7,618
8,566
Syndicated loan-
-
-
-
-
-
Commercial paper-
-
-
-
-
-
Other loans and long-term debts177
363
540
226
81
307
Other financial liabilities177
363
540
226
81
307
Gross Financial debt1,121
6,434
7,555
1,174
7,698
8,873
Fair value hedge derivatives – assets-
(13)
(13)
-
(15)
(15)
Fair value hedge derivatives – liabilities-
2
2
-
0
0
Fair value hedge derivatives-
(12)
(12)
-
(15)
(15)
Net investment hedge derivatives – assets-
-
-
-
-
-
Net investment hedge derivatives – liabilities-
-
-
-
-
-
Net investment hedge derivatives-
-
-
-
-
-
Net asset hedging derivative instruments – assets-
-
-
-
-
-
Net asset hedging derivative instruments – liabilities0
-
0
4
-
4
Net asset hedging derivative instruments0
-
0
4
-
4
Financial debt after Hedging1,121
6,422
7,543
1,178
7,684
8,862
Cash and cash equivalents(923)
-
(923)
(1,152)
-
(1,152)
Net financial debt excluding lease liability198
6,422
6,620
26
7,684
7,710
Lease Liability *-
-
-
93
424
517
Net financial debt198
6,422
6,620
120
8,108
8,228
*Lease liabilities at 31 December 2019 include the contract previously qualified as “Financial leases” and disclosed under “Other loans and financial debts” at 30 June 2019 for an amount of €28 million.
Change in Net Debt
(€ millions) 31/12/2018 31/12/2019Operating profit
1,588
1,636
Depreciation and amortisation111
174
Net change in impairment of goodwill, PPE and intangible assets26
8
Net change in provisions4
75
Retreatment of contributions to pension plans acquired from Allied Domecq and others3
Changes in fair value on commercial derivatives and biological assets(5)
(3)
Net (gain)/loss on disposal of assets(1)
(7)
Share-based payments18
21
Self-financing capacity before interest and tax (1)1,744
1,903
Decrease / (increase) in working capital requirements(654)
(768)
Net interest and tax payments(374)
(401)
Net acquisitions of non financial assets and others(131)
(164)
Free Cash Flow (2)585
570
of which recurring Free Cash Flow (3)622
627
Net acquisition of financial assets and activities and others(103)
(540)
Dividends paid(636)
(843)
(Acquisition) / Disposal of treasury shares(54)
(228)
Decrease / (increase) in net debt (before currency translation adjustments and IFRS 16 non cash impacts)(208)
(1,041)
IFRS 15 opening adjustment16
Foreign currency translation adjustment(69)
(36)
Non cash impact on lease liabilities (4)(531)
Decrease / (increase) in net debt (after currency translation adjustments and IFRS 16 non cash impacts) (5)(260)
(1,608)
Initial net debt(6,962)
(6,620)
Final net debt(7,223)
(8,228)
Note: IFRS16 impacts are: (1) +56M€ / (2) +42M€ / (3) +38M€ / (4) -531M€ / (5) -489M€Net Debt Maturity at 31 December 2019
€ billions
[Missing charts are available on the original document and on www.pernod-ricard.com]
Note: Available cash at 31 December 2019: €1.2bn in cash and €2.5bn syndicated credit not used (syndicated credit coming to maturity in June 2024)
Gross Debt after hedging at 31 December 2019
13% floating rate and 87% fixed rate 46% in EUR and 54% in USDBond details
Currency Par value Coupon Issue date Maturity date EUR € 850 m2.000%
3/20/2014
6/22/2020
€ 650 m2.125%
9/29/2014
9/27/2024
€ 500 m1.875%
9/28/2015
9/28/2023
€ 600 m1.500%
5/17/2016
5/18/2026
€ 1,500 m o/w:
10/24/2019
€ 500 m
0.000%
10/24/2023
€ 500 m0.500%
10/24/2027
€ 500 m0.875%
10/24/2031
USD $ 1,000 m
5.750%
4/7/2011
4/7/2021
$ 1,500 m4.450%
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 years5.500%
1/15/2042
$ 201 mLibor 6m + spread
1/26/2016
1/26/2021
$ 600 m3.250%
6/8/2016
6/8/2026
Net Debt / EBITDA ratio evolution
Closing rate Average rate(1) EUR/USD rate Jun FY19 -> Dec FY20 1.14 -> 1.12 1.14 -> 1.12 Ratio at 30/06/20192.3
2.3
EBITDA & cash generation excl. Group structure effect and forex impacts0.1
0.1
Group structure(2) and forex impacts0.2
0.3
Ratio at 31/12/20192.7
2.7 (3)
(1) Last-twelve-month rate (2) Including IFRS 16 impact (3) Syndicated credit leverage ratio restated from IFRS16 is 2.6Diluted EPS calculation
(x 1,000)H1 FY19
H1 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)
(1,215)
(1,462)
Dilutive impact of stock options and performance shares
1,274
1,303
Number of shares used in diluted EPS calculation
265,481
265,263
(€ millions and €/share)
H1 FY19
H1 FY20
reported
∆
Group share of net profit from recurring operations1,105
1,216
10.0%
Diluted net earnings per share from recurring operations4.16
4.58
10.1%
Current COVID-19 assumptions, with impact on FY20 PRO
China:
On-trade
All outlets closed in February, and till end of June in Hubei province
Gradual recovery starting from March, back to normal by June
Significant impact on Traditional and Modern outlets in late January and February
Recovery in March
Travel Retail Asia
Reduction in Chinese passenger numbers of c. 2/3 in February and March Gradual recovery starting from April, back to normal by JuneFY20 Impact from China + Travel Retail Asia lost Sales:
Impact on Group FY20 Sales: c. -2% Priority investments maintained throughout Group, while activating targeted mitigation measures Impact on Group FY20 PRO: c. -3%Upcoming Communications
DATE¹ EVENT Tuesday 10 March 2020 North America Conference Call Thursday 23 April 2020 Q3 FY20 Sales Tuesday 26 May 2020 Sustainability & Responsibility conference 1 The above dates are indicative and are liable to change
View source version on businesswire.com: https://www.businesswire.com/news/home/20200212005993/en/