2015/2016 Pernod Ricard Half-Year Sales and Results

SOLID H115/16 PERFORMANCE: +3% ORGANIC SALES GROWTH (+7%REPORTED), IN AN ENVIRONMENT THAT REMAINS CONTRASTED

+3% ORGANIC GROWTH IN PROFIT FROM RECURRING OPERATIONS IN H1 (+2% ADJUSTED FOR CHINESE NEW YEAR PHASING) AND +6% REPORTED

FY 15/16 GUIDANCE CONFIRMED:ORGANIC GROWTH IN PROFIT FROM RECURRING OPERATIONS BETWEEN +1% AND +3% 

SALES
Sales for H1 15/16 totalled €4,958m. Organic Sales growth was +3%, representing a continued gradual improvement vs. FY 14/15. Reported Sales growth was +7% with a favourable FX impact.

The improvement was driven by the USA:

• Americas: acceleration of growth +4% vs. +2% in FY 14/15, notably driven by USA (+3% in H1 15/16 vs. stable in FY 14/15.)
• Asia-Rest of World: +5% (+4% adjusting for earlier CNY1)
  • Double-digit growth in India, Africa/Middle East and Australia
  • China: -2%, -8% adjusting for earlier CNY1, in continuity of trends observed in Q1
  • Difficulties in Korea and Travel Retail Asia.
• Europe: improvement +1% vs. stable in FY 14/15, driven by Spain and UK, with encouraging growth in most markets. Decline in France and Russia, in part due to technical impacts.

  Growth across Top 14, Priority Premium Wines and Key Local Brands:

• Strong performance of Jameson, Martell, The Glenlivet, Perrier-Jouët, Mumm and Indian whiskies
• Difficulties for Chivas (due to Asia and Travel Retail) and Absolut (but improving underlying trends in USA)
• Priority Premium Wines: growth acceleration.
  Q2 Sales were €2.734m, +4% in organic growth, with favourable CNY1 phasing. Reported Q2 Sales were up +6%, due to a stronger USD partly offset by Emerging market currencies.

• Success of consistent long-term approach:

  • Market share gains in most key markets
  • Sustained A&P investment driving encouraging results on innovation: +1% out of overall Group Sales growth of +3% in H1 15/16
  • Return to positive pricing: +1%.

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