Sales and Results FY23
Sales and Results FY23
Sales and Results FY23
Results
31st August 2023
Growth data specified in this presentation refers to organic growth, unless otherwise stated.
Data may be subject to rounding.
This presentation can be downloaded from www.pernod-ricard.com
FY23 Sales and Results
2
A Very Strong FY23
Very strong FY23 performance in a normalising environment
4
Broad-based growth across all regions, with strong pricing
execution and resilient volumes
Gaining market share in most markets
Europe Asia-Row
+10%
Americas
OSG1 OSG1 OSG1
Pricing
Weight Weight Weight
in Sales in Sales in Sales +8%
29% 29% 42%
Mix
+1%
1. Weight in FY23 Net Sales / Net Sales Growth 2. LDD Low Double Digit, MSD Mid Single Digit, HSD High Single Digit
6
Consumer centricity fuelling innovation and driving consistent brand
investments
Accelerating in USA
with A&P / Net Sales
c. +130 bps year on
year
Lillet Tonic & Lillet Berry widening Chivas ‘I Rise, We Rise’ manifesto The Glenlivet Twist & Mix Cocktails
consumer occasions with new Ready to campaign across LATAM celebrating combine the flavors of the beloved
Drink different and innovative paths to classics with TGL Single Malt Scotch
success Whisky for the perfect pour 7
Most active year of portfolio management in a decade
Over €1bn invested to complement our portfolio in attractive categories in North America and
continued focus on priority, premium+ brands
Partnership with the most Broadening our agave Flavored whiskey - Acquiring scale in the
innovative and creative portfolio in the US market second fastest fast-growing Canadian
beverage alcohol brand across price bands and growing category in spirits Ready-to-Drink
builders occasions the US (RTD) market
8
Demonstrated ability to rapidly scale acquired brands
Malfy’s very strong profitable growth illustrates how efficiently we integrate new brands
into our ecosystem
2020 2023
X3
c. 400
4 12
9
Sustainability & Responsibility amplifying performance and
strengthening business resilience
82% direct affiliates with strategic regenerative agriculture or biodiversity 82% 100%
Nurturing Terroir project
22% -54%
-12% scope 1+2 carbon emissions³ (absolute)
94% of markets with one global/local responsible drinking initiative 94% 100%¹
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Our performance builds on our strengths and our growth model,
enhanced by tech and data
Increasing our market capabilities from activating 6-8 brands to 15-20 brands
SALES TEAMS’
TEAMS’ MARKETING
MARKETING
EFFECTIVENESS
EFFECTIVENESS EFFECTIVENESS
EFFECTIVENESS
12
Ongoing transformation momentum
Driving precision at scale and improving return on investments
The right brand, at the right time, at the right place, at the right price, with the right message
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Delivering a strong track record of performance
+18%
1 YEAR TSR
+52%
3 YEAR TSR
+56%
5 YEAR TSR
1. As at 30/06/2023, TSR spot method, with dividend reinvested. Comparison Group as reported in the Universal Registration Document
15
Evolving our operating model to fuel our future growth
A new Executive Committee leading Agile Operating model empowering
our ambition teams
1. Domestic Market
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China¹ +6%
1. Domestic Market
20
India¹ +13%
1. Domestic Market
21
Global Travel Retail +40%
22
Europe¹ +8%
Resilient volumes across the region,
Asia-RoW¹ +17%
• Japan: +21% with dynamic performance on Champagne and Scotch Portfolio
• Korea: +19% with very dynamic growth on Ballantine’s, Royal Salute and
Jameson. Share gains
• Taiwan market and South East Asia: very dynamic growth of Cognac and
Scotch whiskies supported by resumption of travellers
• Turkey²: +44% with growth led by Chivas Regal and share gains
• Africa: +15% with very dynamic performance in South Africa, Nigeria and
Kenya with Jameson, Chivas Regal and Martell
1. Including Travel Retail, Americas including USA and Asia-RoW including China and India 2. Turkey excl. hyperflation impact 24
Strong brand momentum driving spirits’ very dynamic growth
Strategic
Specialty Brands
6% / 5%
+8% MSD
Strategic Wines
4% / -1%
-2% MSD
1. Weight in FY23 Net Sales / Net Sales Growth 2. Pricing Effect: LDD Low Double Digit, HSD High Single Digit, MSD Mid Single Digit
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Jameson +10%
Strong growth across Europe and Asia
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Scotch +17%
Double digit pricing building on the strong global demand for Scotch
Ballantine’s +13%
• Strong international growth notably in Korea, India, Japan, Spain, Turkey and Brazil
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Absolut +10%
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Martell +10%
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Dynamic performance on other Strategic International Brands
Havana Club ǀ +6% with growth Malibu ǀ +4% with H2 rebound in the US and GH Mumm & Perrier-Jouët ǀ +1% with
driven by LATAM strong full-year growth in Asia very strong H2 rebound in Japan
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1. Organic Net Sales growth
FY23 Sales and Results
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Profit
Sustaining Gross Margin and expanding Organic Operating Margin
thanks to leading premium portfolio, excellent RGM and operational
efficiencies
FY23 Profit
Organic +32bps
Organic PRO
+11%
Reported PRO
• Gross Margin protected as price and mix offset • Reported Operating Margin down 68 bps
COGS inflation with an overall unfavourable FX impact of
€(70)m²
• A&P consistent at c.16% of Net Sales
• Perimeter impact +€60m²
• Discipline on Structure costs (growing +8%
organically)
FY23 Profit
Reported
FY22 FY23
∆
Group share of Net Profit from Recurring Operations 2,124 2,340 +10%
• Increase of Recurring Financial Expenses due to higher financing rates with average cost of debt at 2.6%
FY23 Profit
Reported
€ millions FY22 FY23
∆
Total Total
• Non-recurring expenses driven by restructuring costs and benefitting from asset disposals
• Modest working capital increase • Increase in financial expenses, due to higher financing
Recurring Free Cash Flow rate environment
• Significant increase in strategic inventories and Capex
FY24 guidance
Strategic inventories:
investment levels similar to
FY23
37
Strong balance sheet supporting a dynamic financial policy
+952
(1 431) +1 076
8 657
2.7x¹
• Share buyback c.€750m in FY23
38
1. Based on average EUR/USD rates: 1.05
Accelerating returns to shareholders
Proposed dividend¹ of €4.70 per share, +14% vs FY22
FY24 Share buyback program of €500m to €800m
Outlook to FY24
In a challenging environment, we anticipate for FY24:
• Broad-based and diversified Net Sales growth for the full year, with soft start in Q1 amplified
by high comparison basis
• Adapting to easing inflationary pressures
• Continued focus on Revenue Growth Management and operational efficiencies
• Consistent A&P ratio at c. 16% of Net Sales, dynamically optimized through KDPs¹
• Disciplined investments in structure
• All leading to organic Operating Margin expansion
• Significant investments in Capex of c. €800m - €1bn range and strategic inventories with a
similar level to FY23 to sustainably support future growth
• Share buyback of €500m to €800m
• Negative FX impact
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1. Key Digital Programs
FY23 Sales and Results
42
Appendices
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 beconsideredascomplementary tothecomparable IFRS measures andreportedmovements therein.
FY23 Appendices
Organic growth
Profit from recurring operations
Organic growth is calculated after excluding the impacts of exchange rate movements and
acquisitions and disposals, changes in applicable accounting principles and hyperinflation. Profit from recurring operations corresponds to the operating profit excluding
other non-current operating income and expenses.
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.
The impact of hyperinflation on Net Sales and PRO in Turkey is excluded from P&L organic growth
calculations by capping unit local price/cost increases to a maximum of +26% per year, equivalent
to +100% over 3 years.
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.
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Upcoming Communications
FY23 Appendices
Date (subject to change) Event
19 October 2023 Q1 FY24 Sales*
10 November 2023 Annual General Meeting
15 February 2024 H1 FY24 Sales and Results
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Emerging Markets
FY23 Appendices
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
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Strategic International Brands’ organic Sales growth
FY23 Appendices
Volumes FY23
Organic Net Sales
Volumes Price/mix
growth FY23
(in 9Lcs millions)
46
Sales Analysis by Period and Region
Net Sales
FY23 Appendices
FY22 FY23 Change Organic Growth Group Structure Forex Impact
(€ millions)
Americas 3,133 29.3% 3,481 28.7% +348 +11% +62 +2% +108 +3% +178 +6%
Asia / Rest of World 4,438 41.5% 5,191 42.8% +753 +17% +755 +17% +84 +2% (86) (2)%
Europe 3,130 29.2% 3,465 28.5% +335 +11% +251 +8% +57 +2% +27 +1%
Group 10,701 100.0% 12,137 100.0% 1,436 +13% 1,068 +10% 248 +2% 120 +1%
Net Sales
Q4 FY22 Q4 FY23 Change Organic Growth Group Structure Forex Impact
(€ millions)
Americas 708 30.9% 728 27.7% +20 +3% +20 +3% +45 +6% (45) (6)%
Asia / Rest of World 857 37.4% 1,073 40.8% +216 +25% +311 +36% +23 +3% (118) (14)%
Europe 729 31.8% 829 31.5% +100 +14% +103 +14% +9 +1% (13) (2)%
Group 2,295 100.0% 2,630 100.0% 336 +15% 434 +19% 78 +3% (176) (8)%
C
Net Sales
H2 FY22 H2 FY23 h Change Organic Growth Group Structure Forex Impact
(€ millions)
a
Americas 1,495 31.5% 1,476 28.9% (19) (1)% (56) (4)% +78 +5% (42) (3)%
Asia / Rest of World 1,914 40.4% 2,069 42.7% +155 +8% +295 +15% +36 +2% (175) (9)%
Europe 1,333 28.1% 1,476 28.4% +144 +11% +143 +11% +18 +1% (18) (1)%
Group 4,742 100.0% 5,022 100.0% 280 +6% 381 +8% 133 +3% (235) (5)%
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Summary Consolidated Income Statement
FY23 Appendices
(€ millions) FY22 FY23 Change
48
Profit from Recurring Operations by Region (1/2)
World
FY23 Appendices
(€ millions) FY22 FY23 Change Organic Growth Group Structure Forex impact
Net sales (Excl. T&D) 10,701 100.0% 12,137 100.0% 1,436 +13% 1,068 +10% 248 +2% 120 +1%
Gross margin after logistics costs 6,473 60.5% 7,246 59.7% 773 +12% 646 +10% 142 +2% (15) (0)%
Advertising & promotion (1,698) 15.9% (1,939) 16.0% (242) +14% (180) +11% (31) +2% (31) +2%
Contribution after A&P 4,775 44.6% 5,307 43.7% 531 +11% 466 +10% 111 +2% (46) (1)%
Profit from recurring operations 3,024 28.3% 3,348 27.6% 324 +11% 334 +11% 60 +2% (70) (2)%
Americas
(€ millions) FY22 FY23 Change Organic Growth Group Structure Forex impact
Net sales (Excl. T&D) 3,133 100.0% 3,481 100.0% 348 +11% 62 +2% 108 +3% 178 +6%
Gross margin after logistics costs 2,059 65.7% 2,220 63.8% 161 +8% 10 +0% 51 +2% 100 +5%
Advertising & promotion spend (568) 18.1% (686) 19.7% (117) +21% (57) +10% (23) +4% (38) +7%
Contribution after A&P spend 1,491 47.6% 1,534 44.1% 43 +3% (47) (3)% 28 +2% 62 +4%
Profit from recurring operations 1,014 32.4% 965 27.7% (49) (5)% (87) (9)% (6) (1)% 45 +4%
Bulk Spirits are allocated by Region according to the Regions’ weight in the Group
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Profit from Recurring Operations by Region (2/2)
Asia / Rest of the World
FY23 Appendices
(€ millions) FY22 FY23 Change Organic Growth Group Structure Forex impact
Net sales (Excl. T&D) 4,438 100.0% 5,191 100.0% 753 +17% 755 +17% 84 +2% (86) (2)%
Gross margin after logistics costs 2,496 56.2% 2,969 57.2% 473 +19% 501 +20% 74 +3% (102) (4)%
Advertising & promotion (633) 14.3% (740) 14.3% (107) +17% (111) +18% (4) +1% 7 (1)%
Contribution after A&P 1,862 42.0% 2,229 42.9% 366 +20% 390 +21% 70 +4% (95) (5)%
Profit from recurring operations 1,220 27.5% 1,516 29.2% 296 +24% 325 +27% 64 +5% (93) (8)%
Europe
(€ millions) FY22 FY23 Change Organic Growth Group Structure Forex impact
Net sales (Excl. T&D) 3,130 100.0% 3,465 100.0% 335 +11% 251 +8% 57 +2% 27 +1%
Gross margin after logistics costs 1,918 61.3% 2,057 59.4% 139 +7% 135 +7% 17 +1% (13) (1)%
Advertising & promotion (496) 15.9% (513) 14.8% (17) +3% (13) +3% (4) +1% (0) +0%
Contribution after A&P 1,422 45.4% 1,544 44.6% 122 +9% 122 +9% 13 +1% (13) (1)%
Profit from recurring operations 790 25.2% 867 25.0% 77 +10% 96 +12% 2 +0% (22) (3)%
Bulk Spirits are allocated by Region according to the Regions’ weight in the Group
50
Foreign Exchange Impact
FY23 Appendices
Average rates evolution On Profit from
Forex impact FY23
On Net Sales Recurring
(€ millions)
FY22 FY23 % Operations
51
Sensitivity of profit and debt to EUR/USD exchange rate
FY23 Appendices
Estimated impact of a 1% appreciation of the USD
52
Balance Sheet: Assets
Assets
FY23 Appendices
30/06/2022 30/06/2023
(€ millions)
(Net book value)
Non-current assets
Intangible assets and goodwill 17,657 19,000
Tangible assets and other assets 4,600 4,798
Deferred tax assets 1,844 1,870
Total non-current assets 24,100 25,667
Current assets
Inventories 7,369 8,104
aged work-in-progress 5,732 6,267
non-aged work-in-progress 91 151
other inventories 1,546 1,685
Receivables (*) 1,388 1,814
Trade receivables 1,320 1,401
Other trade receivables 68 413
Other current assets 435 435
Other operating current assets 430 427
Tangible/intangible current assets 6 8
Tax receivable 145 31
Cash and cash equivalents and current derivatives 2,559 1,624
Total current assets 11,896 12,008
Assets held for sale 15 1
Total assets 36,012 37,676
53
Balance Sheet: Liabilities and Shareholder’s Equity
Liabilities and shareholders’ equity
FY23 Appendices
30/06/2022 30/06/2023
(€ millions)
Group Shareholders’ equity 15,944 15,717
Non-controlling interests 309 998
of which profit attributable to non-controlling interests 35 21
Total Shareholders’ equity 16,253 16,715
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Analysis of Working Capital Requirement
FY23 Appendices
June June June FY22 WC FY23 WC
(€ millions)
2021 2022 2023 change* change*
55
Net Debt
30/06/2022 30/06/2023
FY23 Appendices
(€ millions)
Current Non-current Total Current Non-current Total
Bonds 842 9,238 10,079 580 9,678 10,258
Commercial paper 180 - 180 801 - 801
Other loans and long-term debts 226 179 405 155 173 328
Other financial liabilities 406 179 585 956 173 1 129
Gross Financial debt 1,248 9,417 10,664 1 536 9 851 11 387
Fair value hedge derivatives – assets (5) - (5) - - -
Fair value hedge derivatives – liabilities - 9 9 - 14 14
Fair value hedge derivatives (5) 9 3 - 14 14
Net investment hedge derivatives – assets - - - - (3) (3)
Net investment hedge derivatives – liabilities - 9 9 - - -
Net investment hedge derivatives - 9 9 - (3) (3)
FINANCIAL DEBT AFTER HEDGING 1,242 9,435 10,677 1,536 9 862 11 398
Cash and cash equivalents (2,527) - (2,527) (1,609) - (1 609)
NET FINANCIAL DEBT EXCLUDING LEASE DEBT (1,284) 9,435 8,150 (73) 9,862 9 789
Lease Debt 107 400 507 99 384 484
NET FINANCIAL DEBT (1,177) 9,835 8,657 26 10 246 10 273
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Change in Net Debt
FY23 Appendices
(€ millions) 30/06/2022 30/06/2023
57
Net Debt Maturity profile as at 30 June 2023
FY23 Appendices
58
Bond Details
FY23 Appendices
€ 1,500 m o/w:
€ 500 m 0.000% 24/10/2019 24/10/2023
€ 500 m 0.500% 24/10/2027
€ 500 m 0.875% 24/10/2031
€ 650 m 2.125% 29/09/2014 27/09/2024
€ 1,500 m o/w:
€ 750 m 1.125% 01/04/2020 07/04/2025
€ 750 m 1.750% 08/04/2030
EUR € 500 m o/w:
€ 250 m 1.125% 27/04/2020 07/04/2025
€ 250 m 1.750% 08/04/2030
€ 600 m 1.500% 17/05/2016 18/05/2026
€ 750 m 1.375% 07/04/2022 07/04/2029
€ 500 m 0.125% 04/10/2021 04/10/2029
€ 1 100 m o/w:
€ 500 m 3.750% 02/11/2022 02/11/2032
€ 600 m 3.250% 02/11/2028
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Net debt / EBITDA evolution
FY23 Appendices
Closing rate Average rate(1)
EUR/USD rate Jun FY22 -> Jun FY23 1.04 -> 1.09 1.13 -> 1.05
60
Net Diluted EPS
FY23 Appendices
(x 1,000) FY22 FY23
reported
(€ millions and €/share) FY22 FY23
r
Group share of net profit from recurring operations 2,124 2,340 10.2%
Diluted net earnings per share from recurring operations 8.18 9.11 11.4%
61