Pernod Ricard: Favourable Court Decision Concerning USA Drawback

Rhea-AI Summary

The US Court of Appeals for the Federal Circuit ruled on August 23, 2021, in favor of the National Association of Manufacturers, allowing Pernod Ricard to claim drawbacks on eligible spirits exported from the USA. This decision is projected to increase Pernod Ricard's profit before tax by US$163 million for FY21, including US$33 million in Profit from Recurring Operations, equating to about 1% organic growth. Pernod Ricard, a leading global wine and spirits producer, reported consolidated sales of €8,448 million in FY20.

Positive

• Court decision allows Pernod Ricard to claim drawback on exported spirits, increasing profit before tax by US$163 million for FY21.
• Profit from Recurring Operations expected to rise by US$33 million, contributing approximately 1% to organic growth.

Negative

• None.

PARIS--(BUSINESS WIRE)-- Regulatory News:

Press release - Paris, 25 August 2021

On 23 August 2021, the US Court of Appeals for the Federal Circuit rendered their decision in favour of the National Association of Manufacturers. As a result, Pernod Ricard (Paris:RI) can claim drawback upon eligible spirits exported from the USA¹.

For Pernod Ricard, the impact of this decision for FY21 represents an additional profit before tax of US$163m, of which US$33m of Profit from Recurring Operations, equivalent to an additional c.1% of organic growth².

About Pernod Ricard

Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales of €8,448 million in FY20. Created in 1975 by the merger of Ricard and Pernod, the Group has developed through organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive brand portfolios in the industry, including: 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, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, and Kenwood wines. Pernod Ricard’s brands are distributed across 160+ markets and by its own salesforce in 73 markets. The Group’s decentralised organisation empowers its 19,000 employees to be true on-the-ground ambassadors of its vision of “Créateurs de Convivialité.” As reaffirmed by the Group’s strategic plan, “Transform and Accelerate,” deployed in 2018, Pernod Ricard’s strategy focuses on investing in long-term, profitable growth for all stakeholders. The Group remains true to its three founding values: entrepreneurial spirit, mutual trust, and a strong sense of ethics, as illustrated by the 2030 Sustainability and Responsibility roadmap supporting the United Nations Sustainable Development Goals (SDGs), “Good times from a good place.” In recognition of Pernod Ricard’s strong commitment to sustainable development and responsible consumption, it has received a Gold rating from Ecovadis. Pernod Ricard is also a United Nation’s Global Compact LEAD company.

Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.

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¹ Under US law, a company can claim drawback i.e. a refund of the duties or taxes that were paid on certain goods upon their importation when similar goods are exported
² Not included in Company guidance communicated to market on 23 June 2021

View source version on businesswire.com: https://www.businesswire.com/news/home/20210824005899/en/

Charly Montet / Investor Relations Manager +33 (0) 1 70 93 17 13

Emmanuel Vouin / Press Relations Manager +33 (0) 1 70 93 16 34

Source: Pernod Ricard

FAQ

What was the recent court decision regarding Pernod Ricard on August 23, 2021?

The US Court of Appeals ruled in favor of the National Association of Manufacturers, allowing Pernod Ricard to claim drawbacks on eligible spirits exported from the USA.

How much additional profit is Pernod Ricard expected to gain from the recent court ruling?

Pernod Ricard is expected to gain an additional profit before tax of US$163 million for FY21.

What is the impact of the court's decision on Pernod Ricard's recurring operations?

The decision is projected to enhance Profit from Recurring Operations by US$33 million, equivalent to about 1% of organic growth.