Pernod Ricard

Robust Performance With Improving Momentum in Q3 - Seite 2

• Strategic International Brands: +1%/-3%, Inventory adjustments in the US and softer performance in China weigh on the overall YTD performance of Strategic International Brands. Key highlights by Market and Brand include Martell in Nigeria; Jameson in India, Germany and Korea; Absolut in Germany, China, India and Turkey; Chivas Regal in Turkey, Japan and Western Europe; Ballantine’s in Turkey, Germany and Poland; The Glenlivet in India, Taiwan Market and Japan; and Royal Salute in Taiwan Market
• Strategic Local Brands: +5%/+4%, with good momentum of the Seagram’s whiskies portfolio in India, with Kahlua in the US and UK; with Olmeca across all regions
• Specialty Brands: -7%/-6%, impacted by the US inventory adjustments. Net Sales highlights include Bumbu, the recently launched Deacon Scotch Whisky and Altos Tequila
• Strategic Wines: -9%/-10%, mainly driven by declines in USA and UK

Outlook

Building on very strong FY23 and robust 9M FY24 performances, Pernod Ricard remains confident in its medium-term financial framework of +4% to +7% top line growth, aiming for the upper end of the range, with Organic Operating Leverage of +50/+60 bps.

In a challenging environment, Pernod Ricard expects for FY24:

• Dynamic Q4 Net Sales, improving versus 9M, leading to broadly stable full year Organic Net Sales
• Continued focus on Revenue Growth Management and operational efficiencies
• A&P ratio at c. 16% of Net Sales and very strict control of Structure Costs
• Organic Operating Margin expansion, with Organic Profit from Recurring Operations growing by c.+1%
• Negative FX impact partially offset by perimeter effect
• Investments in strategic inventories at a similar level to FY23, and increase in Capex to c.€800m
• Free Cash Flow reflecting lower reported PRO and increase in strategic investments
• c.€300m share buyback for the year, with c.€150m completed in H1

Dividend

An interim dividend of €2.35 per share will be detached on 17^th July 2024 and paid on 19^th July 2024. The final dividend will be subject to the AGM decision on 8^th November 2024

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.

Organic Growth for named markets excludes Travel Retail.

This press release is also available from our website: www.pernod-ricard.com

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.