PARIS--(BUSINESS WIRE)--Regulatory News:
Pernod Ricard (Paris:RI):
Press release - Paris, 1 September 2016
SOLID AND ENCOURAGING FY16 PERFORMANCE
+2% ORGANIC SALES
GROWTH (+1% REPORTED)
+2% ORGANIC GROWTH IN PRO1
(+2% REPORTED)
STRONG FREE CASH FLOW GROWTH: +31%
FY17 GUIDANCE:
ORGANIC GROWTH IN PRO BETWEEN +2% AND +4%
SALES
Sales for FY16 totalled €8,682m. Organic Sales growth was +2%, improving vs. FY15 when restated for French technical impact2. Reported Sales growth was +1%.
The improvement was mainly driven by the USA and Spain:
- Americas: acceleration of growth +4% vs. +2% in FY15, notably driven by USA (+4% in FY16 vs. stable in FY15)
- Asia-Rest of World: +1% thanks to double-digit growth in India and Africa/Middle East but difficulties in China (-9%), Korea and Travel Retail
- Europe: improvement (+1% vs. stable in FY15) driven by Spain, with encouraging growth in most markets, but a technical(2) decline in France. European growth restated for French technical impact(2): +3%
Stable Top 14 and good dynamism of Priority Premium Wines and Key Local Brands:
- Strong performance of Jameson, Ballantine’s, Perrier-Jouët and Indian whiskies
- Difficulties for Chivas and Absolut (but improving yoy underlying trends in USA)
- Priority Premium Wines: growth acceleration driven by Campo Viejo
Innovation driving growth:
- Sustained A&P investment driving encouraging results on innovation: +1% out of overall Group Sales growth of +2% in FY16
- Innovation driving premiumisation
- Successful launch of Jameson Caskmates, The Glenlivet Founder’s Reserve and Chivas Extra
Q4 Sales were €1,869m, -1% in organic growth (-7% reported.) Restated by technical impact in France(2) and shipment phasing in USA, Sales at +2%, consistent with underlying trends and full-year performance.
1 PRO = Profit from Recurring Operations
2
Shipments brought forward from July to June 2015 ahead of back-office
mutualisation between Ricard and Pernod on 1 July 2015
RESULTS
FY16 PRO was €2,277m, with organic growth of +2% and +2% reported:
-
Lower Gross margin pressure vs. FY15: -13bps in FY16 vs.
-105bps in FY15
- Improving pricing: +1% (vs. flat in FY15)
- Negative mix driven by geography (India growth vs. China decline)
- Tight management of costings: +1% Cost Of Goods Sold at comparable mix
- A&P: +1% with quasi stability in ratio at 19% Sales, to support key innovation projects and must-win markets (USA in particular)
- Very tight management of Structure costs, with growth in line with Sales
PRO margin improved +7bps thanks to tight management of resources and operational efficiency initiatives.
The corporate income tax rate on recurring items was quasi stable at c. 25%.
Group share of Net PRO was €1,381m, +4% reported vs. FY15 and at a historical high.
Group share of Net profit was €1,235m, +43% reported vs. FY15, also at a historical high.
FREE CASH FLOW AND DEBT
Cash generation was strong, with Recurring Free Cash Flow of €1,200m, +4% vs. FY15.
Net debt decreased by €305m to €8,716m mainly driven by very strong Free Cash Flow of €1,061m.
The average cost of debt reduced to 4.1% vs. 4.4% vs FY15. The expected cost for FY17 is c. 3.8%.
The Net debt / Ebitda ratio at average rates was 3.41 at 30/06/16, down from <3.5 at 30/06/15. The organic improvement was significant at 0.3, but dampened by adverse FX on emerging market currencies.
Refinancing was made at excellent conditions. Moody’s upgraded Pernod Ricard to Baa2/P2 in May 2016.
PROPOSED DIVIDEND
A dividend of €1.88 is proposed for the Annual General Meeting, +4% vs FY15, corresponding to a pay-out ratio of 36%, in line with the customary policy of cash distribution of approximately one-third of Group net profit from recurring operations.
1 Average EUR/USD rate of 1.11 in FY16 vs. 1.20 for FY15
INITIATIVES TO DELIVER MEDIUM-TERM STRATEGY
Significant initiatives were accomplished to deliver the mid-term strategic roadmap, as outlined during the June 2015 Capital Market Day, and further improve performance:
- USA and innovation accelerating
-
Organisational changes to drive stronger performance
- Simplification of Americas region
- Creation of 2 Management Entities in Mexico and Brazil
- Creation of Global Travel Retail, reporting directly to HQ
- Finalisation of transformation of Pernod Ricard USA
- Adjustment of organisation in China to new market context
- Organisational changes in Korea
-
Implementation of operational efficiency roadmap:
- Covering supply chain, manufacturing, procurement and A&P
- Will contribute to improving PRO margin medium-term. Over the period FY16 to FY20, total gross P&L savings of €200m are expected (mainly A&P and Gross margin and to a lesser extent Structure costs), of which approximately half will be reinvested into A&P.
- Total cash savings of €200m are also expected over the period FY16-20.
- Active portfolio and resource allocation management
- Targeted M&A with disposal of non-core assets (eg Paddy) and acquisition focus on fast-growing premium+ segments (Monkey 47.)
Pernod Ricard is confident in its ability to deliver medium-term objectives:
- Topline growth 4 to 5 %
- Operating margin improvement.
As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, declared, “FY16 was a solid and encouraging year, delivering Profit from Recurring Operations in line with guidance while maintaining investment and implementing significant initiatives to deliver our medium-term strategy and objectives.
“For full year FY17, in a contrasted environment, we expect to continue improving our business performance year-on-year vs. FY16, supporting priority markets, brands and innovations and focusing on operational excellence. As a consequence, our guidance for FY17 is organic growth in Profit from Recurring Operations between +2% and +4%.”
All growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding.
A detailed presentation of FY16 Sales and Results can be downloaded from our website: www.pernod-ricard.com
Audit procedures have been carried out on the full-year financial statements. The Statutory Auditors’ report will be issued following their review of the management report.
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.
Organic growth
Organic growth is calculated after excluding the impacts of exchange rate movements and acquisitions and disposals.
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.
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.
Free cash flow
Free cash flow comprises the net cash flow from operating activities excluding the contributions to Allied Domecq pension plans, aggregated with the proceeds from disposals of property, plant and equipment and intangible assets and after deduction of the capital expenditures.
“Recurring” indicators
The following 3 measures represent key indicators for the measurement of the recurring performance of the business, excluding significant items that, because of their nature and their unusual occurrence, cannot be considered as inherent to the recurring performance of the Group:
- Recurring free cash flow
Recurring free cash flow is calculated by restating free cash flow from non-recurring items.
- Profit from recurring operations
Profit from recurring operations corresponds to the operating profit excluding other non-current operating income and expenses.
- Group share of net profit from recurring operations
Group share of net profit from recurring operations corresponds to the Group share of net profit excluding other non-current operating income and expenses, non-recurring financial items and corporate income tax on non-recurring items.
Net debt
Net debt, as defined and used by the Group, corresponds to total gross debt (translated at the closing rate), including fair value and net foreign currency assets hedging derivatives (hedging of net investments and similar), less cash and cash equivalents.
EBITDA
EBITDA stands for “earnings before interest, taxes, depreciation and amortization”. EBITDA is an accounting measure calculated using the Group's profit from recurring operations excluding depreciation and amortization on operating fixed assets.
About Pernod Ricard
Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of € 8,682 million in FY16. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier- Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, Graffigna and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,000 people and operates through a decentralised organisation, with 6 “Brand Companies” and 85 “Market Companies” established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard’s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.
Appendices
Emerging Markets
| 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 | ||||||
Top 14 Spirits and Champagnes organic Sales growth
|
Volumes
FY16 |
Organic Sales growth
FY16 |
Volumes | Price/mix | |||||
| (in 9Lcs millions) | ||||||||
| Absolut | 10.9 | -4% | -2% | -1% | ||||
| Chivas Regal | 4.3 | -4% | -5% | 1% | ||||
| Ballantine's | 6.5 | 3% | 5% | -2% | ||||
| Ricard | 4.5 | -8% | -8% | 0% | ||||
| Jameson | 5.7 | 16% | 12% | 4% | ||||
| Havana Club | 4.0 | 3% | 1% | 2% | ||||
| Malibu | 3.4 | 1% | 1% | 0% | ||||
| Beefeater | 2.7 | 4% | 3% | 1% | ||||
| Kahlua | 1.5 | -2% | -2% | 0% | ||||
| Martell | 2.1 | -4% | -1% | -3% | ||||
| The Glenlivet | 1.0 | 3% | -2% | 5% | ||||
| Royal Salute | 0.2 | 4% | 5% | -1% | ||||
| Mumm | 0.7 | 0% | 2% | -2% | ||||
| Perrier-Jouët | 0.3 | 9% | 7% | 1% | ||||
| Top 14 | 47.9 | 0% | 0% | 0% |
Sales analysis by region
|
Net Sales
(€ millions) |
FY15 | FY16 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Europe | 2,731 | 31.9% | 2,709 | 31.2% | (21) | -1% | 29 | 1% | 1 | 0% | (51) | -2% | ||||||||||||
| Americas | 2,382 | 27.8% | 2,476 | 28.5% | 94 | 4% | 96 | 4% | (49) | -2% | 48 | 2% | ||||||||||||
| Asia / Rest of the World | 3,446 | 40.3% | 3,498 | 40.3% | 51 | 1% | 27 | 1% | (3) | 0% | 27 | 1% | ||||||||||||
| World | 8,558 | 100.0% | 8,682 | 100.0% | 124 | 1% | 152 | 2% | (52) | -1% | 23 | 0% | ||||||||||||
|
Net Sales
(€ millions) |
Q4 2015 | Q4 2016 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Europe | 647 | 32.1% | 635 | 34.0% | (12) | -2% | 7 | 1% | 3 | 0% | (22) | -3% | ||||||||||||
| Americas | 637 | 31.6% | 577 | 30.9% | (59) | -9% | (8) | -1% | (12) | -2% | (40) | -6% | ||||||||||||
| Asia / Rest of the World | 732 | 36.3% | 657 | 35.1% | (76) | -10% | (14) | -2% | 0 | 0% | (62) | -8% | ||||||||||||
| World | 2,016 | 100.0% | 1,869 | 100.0% | (147) | -7% | (14) | -1% | (9) | 0% | (124) | -6% | ||||||||||||
|
Net Sales
(€ millions) |
H2 2015 | H2 2016 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Europe | 1,152 | 29.3% | 1,139 | 30.6% | (12) | -1% | 15 | 1% | 5 | 0% | (32) | -3% | ||||||||||||
| Americas | 1,140 | 29.0% | 1,106 | 29.7% | (34) | -3% | 49 | 4% | (21) | -2% | (61) | -5% | ||||||||||||
| Asia / Rest of the World | 1,645 | 41.8% | 1,479 | 39.7% | (166) | -10% | (63) | -4% | 0 | 0% | (104) | -6% | ||||||||||||
| World | 3,937 | 100.0% | 3,725 | 100.0% | (212) | -5% | 1 | 0% | (16) | 0% | (197) | -5% | ||||||||||||
Summary consolidated income statement
| (€ millions) | FY15 | FY16 | Change | |||
| Net sales | 8,558 | 8,682 | 1% | |||
| Gross Margin after logistics costs | 5,296 | 5,371 | 1% | |||
| Advertising and promotion expenses | (1,625) | (1,646) | 1% | |||
| Contribution after A&P expenditure | 3,671 | 3,725 | 1% | |||
| Structure costs | (1,433) | (1,448) | 1% | |||
| Profit from recurring operations | 2,238 | 2,277 | 2% | |||
| Financial income/(expense) from recurring operations | (457) | (422) | -8% | |||
| Corporate income tax on items from recurring operations | (434) | (455) | 5% | |||
| Net profit from discontinued operations, non-controlling interests and share of net income from associates | (18) | (20) | 6% | |||
| Group share of net profit from recurring operations | 1,329 | 1,381 | 4% | |||
| Other operating income & expenses | (649) | (182) | NA | |||
| Financial income/(expense) from non-recurring operations | (32) | (10) | NA | |||
| Corporate income tax on items from non recurring operations | 213 | 46 | NA | |||
| Group share of net profit | 861 | 1,235 | 43% | |||
| Non-controlling interests | 19 | 20 | 6% | |||
| Net profit | 880 | 1,255 | 43% |
Profit from recurring operations by region
| World | ||||||||||||||||||||||||
| (€ millions) | FY15 | FY16 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Net sales (Excl. T&D) | 8,558 | 100.0% | 8,682 | 100.0% | 124 | 1% | 152 | 2% | (52) | -1% | 23 | 0% | ||||||||||||
| Gross margin after logistics costs | 5,296 | 61.9% | 5,371 | 61.9% | 76 | 1% | 83 | 2% | (14) | 0% | 7 | 0% | ||||||||||||
| Advertising & promotion | (1,625) | 19.0% | (1,646) | 19.0% | (21) | 1% | (14) | 1% | 5 | 0% | (12) | 1% | ||||||||||||
| Contribution after A&P | 3,671 | 42.9% | 3,725 | 42.9% | 54 | 1% | 68 | 2% | (9) | 0% | (5) | 0% | ||||||||||||
| Profit from recurring operations | 2,238 | 26.2% | 2,277 | 26.2% | 39 | 2% | 46 | 2% | (13) | -1% | 6 | 0% | ||||||||||||
| Asia / Rest of the World | ||||||||||||||||||||||||
| (€ millions) | FY15 | FY16 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Net sales (Excl. T&D) | 3,446 | 100.0% | 3,498 | 100.0% | 51 | 1% | 27 | 1% | (3) | 0% | 27 | 1% | ||||||||||||
| Gross margin after logistics costs | 2,073 | 60.2% | 2,071 | 59.2% | (2) | 0% | (14) | -1% | (0) | 0% | 13 | 1% | ||||||||||||
| Advertising & promotion | (627) | 18.2% | (621) | 17.8% | 6 | -1% | 13 | -2% | (0) | 0% | (7) | 1% | ||||||||||||
| Contribution after A&P | 1,446 | 42.0% | 1,450 | 41.5% | 4 | 0% | (1) | 0% | (0) | 0% | 5 | 0% | ||||||||||||
| Profit from recurring operations | 999 | 29.0% | 982 | 28.1% | (16) | -2% | (24) | -2% | (0) | 0% | 8 | 1% | ||||||||||||
| Americas | ||||||||||||||||||||||||
| (€ millions) | FY15 | FY16 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Net sales (Excl. T&D) | 2,382 | 100.0% | 2,476 | 100.0% | 94 | 4% | 96 | 4% | (49) | -2% | 48 | 2% | ||||||||||||
| Gross margin after logistics costs | 1,519 | 63.8% | 1,639 | 66.2% | 120 | 8% | 61 | 4% | (17) | -1% | 75 | 5% | ||||||||||||
| Advertising & promotion | (478) | 20.1% | (509) | 20.5% | (31) | 7% | (26) | 6% | 5 | -1% | (11) | 2% | ||||||||||||
| Contribution after A&P | 1,041 | 43.7% | 1,130 | 45.6% | 88 | 8% | 35 | 3% | (11) | -1% | 65 | 6% | ||||||||||||
| Profit from recurring operations | 632 | 26.5% | 706 | 28.5% | 75 | 12% | 28 | 4% | (14) | -2% | 60 | 10% | ||||||||||||
| Europe | ||||||||||||||||||||||||
| (€ millions) | FY15 | FY16 | Change | Organic Growth | Group Structure | Forex impact | ||||||||||||||||||
| Net sales (Excl. T&D) | 2,731 | 100.0% | 2,709 | 100.0% | (21) | -1% | 29 | 1% | 1 | 0% | (51) | -2% | ||||||||||||
| Gross margin after logistics costs | 1,704 | 62.4% | 1,662 | 61.3% | (42) | -2% | 36 | 2% | 3 | 0% | (81) | -5% | ||||||||||||
| Advertising & promotion | (521) | 19.1% | (516) | 19.1% | 4 | -1% | (1) | 0% | (1) | 0% | 6 | -1% | ||||||||||||
| Contribution after A&P | 1,183 | 43.3% | 1,145 | 42.3% | (38) | -3% | 34 | 3% | 2 | 0% | (75) | -6% | ||||||||||||
| Profit from recurring operations | 608 | 22.2% | 588 | 21.7% | (20) | -3% | 42 | 7% | 1 | 0% | (62) | -10% | ||||||||||||
Foreign exchange impact
|
Forex impact FY16
(€ millions) |
Average rates evolution | On Net Sales | On Profit from Recurring Operations | |||||||||
| FY15 | FY16 | % | ||||||||||
| US dollar | USD | 1.20 | 1.11 | -7.7% | 165 | 65 | ||||||
| Chinese yuan | CNY | 7.43 | 7.15 | -3.8% | 29 | 19 | ||||||
| Indian rupee | INR | 74.48 | 73.61 | -1.2% | 10 | 4 | ||||||
| Pound sterling | GBP | 0.76 | 0.75 | -1.7% | 7 | (9) | ||||||
| Russian rouble | RUB | 59.35 | 74.91 | 26.2% | (40) | (25) | ||||||
| Other | (148) | (48) | ||||||||||
| Total | 23 | 6 | ||||||||||
Note: impact on PRO includes strategic FX hedging
Sensitivity of profit and debt to EUR/USD exchange rate
| Estimated impact of a 1% appreciation of the USD and linked currencies(1) | ||
| Impact on the income statement(2) | (€ millions) | |
| Profit from recurring operations | +16 | |
| Financial expenses | (3) | |
| Pre-tax profit from recurring operations | +14 | |
| Impact on the balance sheet | (€ millions) | |
| Increase/(decrease) in net debt | +55 | |
(1) CNY and HKD
(2) Full year impact
Balance sheet
| Assets | 6/30/2015 | 6/30/2016 | ||
| (€ millions) | ||||
| (Net book value) | ||||
| Non-current assets | ||||
| Intangible assets and goodwill | 17,706 | 17,572 | ||
| Tangible assets and other assets | 2,933 | 3,233 | ||
| Deferred tax assets | 2,339 | 2,505 | ||
| Total non-current assets | 22,978 | 23,310 | ||
| Current assets | ||||
| Inventories | 5,351 | 5,294 | ||
| of which aged work-in-progress | 4,430 | 4,364 | ||
| of which non-aged work-in-progress | 73 | 73 | ||
| Receivables (*) | 1,152 | 1,068 | ||
| Trade receivables | 1,084 | 998 | ||
| Other trade receivables | 68 | 70 | ||
| Other current assets | 260 | 251 | ||
| Other operating current assets | 245 | 240 | ||
| Tangible/intangible current assets | 15 | 11 | ||
| Tax receivable | 61 | 92 | ||
| Cash and cash equivalents and current derivatives | 595 | 577 | ||
| Total current assets | 7,419 | 7,282 | ||
| Assets held for sale | 1 | 6 | ||
| Total assets | 30,398 | 30,598 | ||
| (*) after disposals of receivables of: | 591 | 520 | ||
| Liabilities and shareholders’ equity | 6/30/2015 | 6/30/2016 | ||
| (€ millions) | ||||
| Group Shareholders’ equity | 13,121 | 13,337 | ||
| Non-controlling interests | 167 | 169 | ||
| of which profit attributable to non-controlling interests | 19 | 20 | ||
| Total Shareholders’ equity | 13,288 | 13,506 | ||
| Non-current provisions and deferred tax liabilities | 4,427 | 4,718 | ||
| Bonds non-current | 6,958 | 7,078 | ||
| Non-current financial liabilities and derivative instruments | 587 | 341 | ||
| Total non-current liabilities | 11,972 | 12,137 | ||
| Current provisions | 173 | 167 | ||
| Operating payables | 1,696 | 1,688 | ||
| Other operating payables | 920 | 909 | ||
| of which other operating payables | 623 | 592 | ||
| of which tangible/intangible current payables | 297 | 317 | ||
| Tax payable | 116 | 101 | ||
| Bonds - current | 1,514 | 1,884 | ||
| Current financial liabilities and derivatives | 719 | 207 | ||
| Total current liabilities | 5,138 | 4,955 | ||
| Liabilities held for sale | 0 | 0 | ||
| Total liabilities and shareholders' equity | 30,398 | 30,598 |
Analysis of Working Capital Requirement
| (€ millions) |
June
2014 |
June
2015 |
June
2016 |
FY15 WC change* | FY16 WC change* | |||||
| Aged work in progress | 3,963 | 4,430 | 4,364 | 233 | 190 | |||||
| Advances to suppliers for wine and ageing spirits | 6 | 8 | 5 | 1 | (2) | |||||
| Payables on wine and ageing spirits | 97 | 107 | 109 | 8 | 4 | |||||
| Net aged work in progress | 3,872 | 4,331 | 4,260 | 226 | 184 | |||||
| Trade receivables before factoring/securitization | 1,469 | 1,674 | 1,517 | 129 | (98) | |||||
| Advances from customers | 3 | 3 | 2 | (0) | (1) | |||||
| Other receivables | 243 | 305 | 305 | 47 | 27 | |||||
| Other inventories | 833 | 847 | 857 | (13) | 43 | |||||
| Non-aged work in progress | 65 | 73 | 73 | 1 | 4 | |||||
| Trade payables and other | 1,963 | 2,208 | 2,168 | 115 | 44 | |||||
| Gross operating working capital | 645 | 689 | 582 | 50 | (68) | |||||
| Factoring/Securitization impact | 479 | 591 | 520 | (84) | 61 | |||||
| Net Operating Working Capital | 165 | 98 | 62 | (34) | (7) | |||||
| Net Working Capital | 4,037 | 4,428 | 4,322 | 193 | 178 | |||||
| * without FX effects and reclassifications | Of which recurring variation | 192 | 211 | |||||||
| Of which non recurring variation | 0 | (34) | ||||||||
Net Debt
| (En millions d'euros) | 30/06/2015 | 30/06/2016 | ||||||||||
| Current | Non-current | Total | Current | Non-current | Total | |||||||
| Bonds | 1,514 | 6,958 | 8,473 | 1,884 | 7,078 | 8,962 | ||||||
| Syndicated loan | - | - | - | - | - | - | ||||||
| Commercial paper | 459 | - | 459 | 45 | - | 45 | ||||||
| Other loans and long-term debts | 79 | 500 | 580 | 98 | 257 | 355 | ||||||
| Other financial liabilities | 538 | 500 | 1,039 | 143 | 257 | 400 | ||||||
| GROSS FINANCIAL DEBT | 2,052 | 7,459 | 9,511 | 2,027 | 7,335 | 9,362 | ||||||
| Fair value hedge derivatives – assets | (15) | (51) | (66) | - | (77) | (77) | ||||||
| Fair value hedge derivatives – liabilities | - | - | - | - | - | - | ||||||
| Fair value hedge derivatives | (15) | (51) | (66) | - | (77) | (77) | ||||||
| Net investment hedge derivatives – assets | - | - | - | - | - | - | ||||||
| Net investment hedge derivatives – liabilities | - | - | - | - | - | - | ||||||
| Net investment hedge derivatives | - | - | - | - | - | - | ||||||
| Net asset hedging derivative instruments – assets | - | - | - | - | - | - | ||||||
| Net asset hedging derivative instruments – liabilities | 121 | - | 121 | - | - | - | ||||||
| Net asset hedging derivative instruments | 121 | - | 121 | - | - | - | ||||||
| Financial debt after hedging | 2,159 | 7,408 | 9,566 | 2,027 | 7,258 | 9,285 | ||||||
| Cash and cash equivalents | (545) | - | (545) | (569) | - | (569) | ||||||
| Net financial debt | 1,614 | 7,408 | 9,021 | 1,458 | 7,258 | 8,716 | ||||||
Change in Net Debt
| (€ millions) | 30/06/2015 | 30/06/2016 | ||
| Operating profit | 1,590 | 2,095 | ||
| Depreciation and amortisation | 214 | 219 | ||
| Net change in impairment of goodwill, PPE and intangible assets | 656 | 107 | ||
| Net change in provisions | (156) | (76) | ||
| Retreatment of contributions to pension plans acquired from Allied Domecq | 75 | 43 | ||
| Changes in fair value on commercial derivatives and biological assets | (12) | (4) | ||
| Net (gain)/loss on disposal of assets | (98) | (59) | ||
| Share-based payments | 27 | 32 | ||
| Self-financing capacity before interest and tax | 2,296 | 2,358 | ||
| Decrease / (increase) in working capital requirements | (193) | (178) | ||
| Net interest and tax payments | (992) | (801) | ||
| Net acquisitions of non financial assets and others | (302) | (317) | ||
| Free Cash Flow | 808 | 1,061 | ||
| of which recurring Free Cash Flow | 1,154 | 1,200 | ||
| Net disposal of financial assets and activities, contributions to pension plans acquired from Allied Domecq | (37) | (85) | ||
| Dividends paid | (461) | (497) | ||
| (Acquisition) / Disposal of treasury shares and others | (14) | (18) | ||
| Decrease / (increase) in net debt (before currency translation adjustments) | 296 | 461 | ||
| Foreign currency translation adjustment | (964) | (157) | ||
| Decrease / (increase) in net debt (after currency translation adjustments) | (668) | 305 | ||
| Initial net debt | (8,353) | (9,021) | ||
| Final net debt | (9,021) | (8,716) |
Debt Maturity at 30 June 2016
[Missing charts are available on the original document and on www.pernod-ricard.com]
Gross Debt Hedging at 30 June 2016
[Missing charts are available on the original document and on www.pernod-ricard.com]
Natural debt hedging maintained: EUR/USD breakdown close to that of
EBITDA
Large part of Gross debt at fixed rates (94%)
Bond details
| Currency | Par value | Coupon | Issue date | Maturity date | ||||
| EUR | € 1,000 m | 5.000% | 3/15/2011 | 3/15/2017 | ||||
| € 850 m | 2.000% | 3/20/2014 | 6/22/2020 | |||||
| € 650 m | 2.125% | 9/29/2014 | 9/27/2024 | |||||
| € 500 m | 1.875% | 9/28/2015 | 9/28/2023 | |||||
| € 600 m | 1.500% | 5/17/2016 | 5/18/2026 | |||||
| USD | $ 1,000 m | 5.750% | 4/7/2011 | 4/7/2021 | ||||
| $ 1,500 m | 4.450% | 10/25/2011 | 1/15/2022 | |||||
| $ 2,500 m o/w: | 1/12/2012 | |||||||
| $ 850 m at 5 years | 2.950% | 1/15/2017 | ||||||
| $ 800 m at 10.5 years | 4.250% | 7/15/2022 | ||||||
| $ 850 m at 30 years | 5.500% | 1/15/2042 | ||||||
| $ 201 m | Libor 3m + spread | 1/26/2016 | 1/26/2021 | |||||
| $ 600 m | 3.250% | 6/8/2016 | 6/8/2026 |
Diluted EPS calculation
| (x 1,000) | FY15 | FY16 | ||
| Number of shares in issue at end of period | 265,422 | 265,422 | ||
| Weighted average number of shares in issue (pro rata temporis) | 265,422 | 265,422 | ||
| Weighted average number of treasury shares (pro rata temporis) | (1,441) | (1,427) | ||
| Dilutive impact of stock options and performance shares | 2,250 | 1,638 | ||
| Number of shares used in diluted EPS calculation | 266,230 | 265,633 |
| (€ millions and €/share) | FY15 | FY16 | reported | |||
|
∆ |
||||||
| Group share of net profit from recurring operations | 1,329 | 1,381 | +4% | |||
| Diluted net earnings per share from recurring operations | 4.99 | 5.20 | +4% |
