Pernod Ricard

Robust Performance With Improving Momentum in Q3

Regulatory News:

Pernod Ricard (Paris:RI):

Press Release – Paris, 25 April 2024

This robust performance illustrates the strength of our diversified portfolio of premium international spirits and our broad-based geographic footprint covering mature and emerging markets.

This strength largely mitigates the impact of slower performance in China, due to a difficult macroeconomic environment and in the US, as trade inventory levels are adjusted.

Dynamic results achieved notably in the Must Win Markets of India and Global Travel Retail and in Japan, Germany and Turkey, and improving momentum in Q3 in Spain, Brazil and South Africa.

FY24 Q3 Net Sales €2,347m, stable, (+2% excluding Russia) and -2% reported

FY24 9M Net Sales €8,937m, an organic decline of -2% (-1% excluding Russia) and -6% reported, with unfavourable Foreign Exchange impact of -€699m¹, of which roughly half is offset by favourable Group Structure of +€354m²

Volumes grew by +1% in Q3, with growth resuming following four consecutive quarters of decline, with FY24 9M volumes decline -4%

9M Price/mix effect +2%, as the strong, though moderating, price effect at +6% is partially offset by negative market mix

By regions, including Must Win Markets (Q3/YTD)

• Americas: -7%/-7%:
  • USA -11%/-8%, accelerating brand activation, notably on Jameson and newly acquired brands
    • YTD Organic Net Sales performance -8%, with depletions value c.-7% and underlying Sell-Out at c.-3% as the US Spirits market growth remains broadly unchanged and with trade inventories continuing to be adjusted in Q3
    • Jameson Original gains share within its competitive set, following largest ever PR USA investment over the Saint Patrick’s Day period
    • Good Sell-Out performance on Kahlua, Código and Jefferson’s
  • Canada: broadly stable YTD, with strong growth in Q3 on Jameson, Kahlua & Bumbu
  • Brazil: strong rebound in Q3 against favourable comps and improving consumer demand, with growth on Ballantine’s, Absolut and Beefeater
  • Mexico: soft decline YTD with notably weaker tourism impacting On-Trade
• Europe -6%/-5%, excluding Russia a very resilient +4%/+1%: cycling a strong H1 FY23, with growth notably driven by Germany and Eastern Europe
  • France: modest decline YTD, with Q3 in growth driven by strong performance of Ricard and Bumbu
  • Spain: broadly stable YTD with solid growth in Q3 on favourable comps after H1 lapped On-trade recovery and revenge conviviality last year, with good growth YTD on Ballantine’s, Jameson and Chivas Regal
  • Germany: strong double-digit growth YTD driven by Absolut, Jameson and Ballantine’s with favourable comps vs Q3 LY
  • UK: soft performance with good growth YTD on Jameson, Kahlua and Malibu
  • Poland: strong growth YTD thanks to Ballantine’s and Jameson
• Asia-RoW +8%/+2%: Dynamic and accelerating regional performance across Asia and Africa, with the exception of China:
  • India +8%/+5%, strong, broad-based and accelerating performance
    • Strong consumer demand for spirits
    • Sales accelerating and premiumisation continuing
    • Strong YTD growth of Strategic International Brands with Jameson, Absolut and The Glenlivet
    • Strong growth of Seagram’s whisky brands led by Royal Stag and Blenders Pride
  • China -12%/-9% in a challenging macroeconomic environment
    • Sales decline with continuing soft consumer sentiment leading to a weak CNY
    • Solid performance of Martell Noblige
    • Strong growth on premium International brands Jameson, Absolut, Olmeca and Beefeater
  • Japan: double-digit growth YTD driven by Perrier-Jouët, Chivas Regal and The Glenlivet , with a favourable phasing effect in Q3
  • Korea: soft YTD, with better Q3 led by good performance on Jameson and Ballantine’s
  • Other Asia: strong YTD growth of Taiwan Market
  • Africa and Middle East: strong double-digit growth in Q3 and YTD driven by Turkey with outstanding growth on Chivas Regal, Ballantine’s and Olmeca; South Africa with Jameson and RTDs and Nigeria maintaining very strong growth with Martell and Jameson
• Global Travel Retail +38%/+9%: Improving Sell-Out momentum amplified by phasing and favourable comps in Q3
  • Good growth across the portfolio notably on Jameson, Martell and Scotch brands
  • Gradual recovery of Chinese travelers continuing
  • Favourable phasing in Q3 as expected, particularly impacting on TR Asia

By brands: