Pernod Ricard: Financial results for the financial year 2020/21

  •   07/09/2021 - 07h33
  •   DEHOUI Lionel

Pernod Ricard is a wine and spirits company created in 1975 through the merger of Pernod and Ricard. It has developed over the years thanks to its very effective internal growth strategy. It has made numerous acquisitions during its development (Allied Domecq in 2005, Seagram in 2001, and Vin&Sprit in 2008). It recorded very good financial results for the 2020/21 financial year.

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Pernod Ricard: Financial results for the financial year 2020/21

Evolution of annual sales by region and division

After the twelve months of activity counting for the 2020/21 financial year, the Group's sales amounted to 8.824 billion euros following organic growth of 9.7%. 8.824 billion, with organic growth of 9.7%. The increase in sales was +4.5% despite the unfavourable exchange rate effect caused by the depreciation of emerging currencies and the US dollar against the euro.

Its various international strategic brands, notably Martell in China and Jameson in the United States, grew by 11%. The local strategic brands increased by 7% over the period, thanks to the recovery of Indian whiskies (Seagram's, Kalhua, Ramazzoti and Passport). Strategic Wines remained stable, while Specialty brands grew by 28%.

By region, Pernod Ricard's activities in the Americas, Europe and Asia/Rest of World grew by 14%, 4% and 11% respectively. The Group recorded a +22% improvement in its Innovation division.

Note: Pernod Ricard 's activity in the last quarter of the 2020/21 financial year generated sales of € 1.883 billion. 1.883 billion, up 56.5% due to a low base effect.

 

Operating profit and gross margin for fiscal year 2020/21

In general, Pernod Ricard's business activity for the full 12 months of the financial year grew very strongly in the various divisions. It was supported by the Must-Win markets in China and the United States, which recorded record sales. For the first time, sales exceeded USD 2 billion and EUR 1 billion respectively.

Throughout the year, the Group deployed a fairly strong transformation dynamic. For example, it made major investments in its priority markets and brands. It made decisive progress in its digital transformation. This strategy is reflected in the acceleration of the 2030 "Sustainability & Responsibility" roadmap and a strong improvement in e-commerce (+63%).

Moreover, the current operating profit generated by the group's activities during this financial year amounted to 2,423 million euros. 2,423 million, a clear increase of 18.3%. The operating margin rose sharply by 213 basis points.

Note: The gross margin for the 2020/21 financial year increased by 64 basis points compared to its level a year ago. 28 million from the US drawback. Net income, group share, was €1.305 billion with a very strong 297% headline increase compared to FY 2019/20.

 

Pernod Ricard's financial position at year end

At the end of the financial year 2020/21, the company recorded a Free Cash-Flow of € 1,745 million. 1,745 million, its highest level ever. The average cost of debt was 2.8% compared to 3.2% for the previous financial year. Its net debt amounted to 7.452 million euros at the end of the year under review.