Pernod Ricard: Record breaking H1 FY22 Sales and PRO¹ at c. €6bn and c. €2bn

Rhea-AI Summary

Pernod Ricard reported H1 FY22 sales of €5,959m, with an impressive 17% organic growth and 20% reported growth. All regions experienced growth, particularly the Americas with 14% and Europe with 21%. Strategic brands drove sales with a 19% increase, while Specialty Brands rose by 21%. The company achieved a 32% rise in net profit, reaching €1,390m, supported by a strong 39% increase in recurring free cash flow. Despite a volatile environment, Pernod Ricard anticipates sustained growth into FY22, underpinned by its Transform & Accelerate strategy.

Positive

• H1 FY22 sales of €5,959m with +17% organic growth.
• Net profit increased by 32% to €1,390m.
• Strong performance in Americas (+14%) and Europe (+21%).
• Recurring free cash flow up by 39% to €1,383m.
• Strategic International Brands saw a +19% growth.

Negative

• Strategic Wines declined by 6% due to lower harvests in New Zealand.
• Net debt rose by €471m to €7,923m.

+17% organic Sales Growth (+20% reported) and +13% vs. pre-covid²

+22% organic growth in PRO¹ (+25% reported) and +20% vs. pre-covid²

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

Pernod Ricard (Paris:RI):

Press release - Paris, 10 February 2022

SALES

Sales for H1 FY22 totalled €5,959m, with an organic growth of +17% (+20% reported), with a favourable FX impact linked mainly to strength of US Dollar and Chinese Yuan vs. Euro.

H1 FY22 Sales grew in all regions:

• Americas +14%: very dynamic growth in the region, notably USA, Brazil and Travel Retail
• Asia-RoW +16%: excellent growth driven by China, India and Turkey
• Europe +21%: outstanding growth across the region, with rebound in Spain, France, Travel Retail and continued dynamism in Eastern Europe.

Strategic International Brands and Specialty portfolio are driving strong price/mix with:

• Strategic International Brands +19%: broad-based rebound with all brands growing, notably Jameson, Martell, Ballantine’s, Absolut and Chivas Regal, all double-digit
• Strategic Local Brands +14%: driven by recovery of Seagram’s Indian whiskies
• Specialty Brands +21%: continued very dynamic momentum of American whiskeys, Malfy, Monkey 47, Redbreast, Lillet and agave portfolio
• Strategic Wines -6%: soft first half, due in particular to New Zealand lower harvest.

Price/mix on Strategic Brands was strong at +6%.

Innovations are in strong growth +43%.

Q2 Sales were €3,242m, with +14% organic growth, slowing vs. Q1 Organic Sales (+20%), cycling higher comparison basis in some markets.

RESULTS

H1 FY22 PRO was €1,998m, an organic growth of +22%, with a strong organic operating margin improvement of +147bps:

• Gross margin expanding +39bps:
  • Strong pricing across regions and operational excellence savings
  • more than compensating inflation in Costs of Goods, notably from logistics and commodities
• Phasing in A&P with acceleration expected in H2 with ratio of c. 16% for FY22
• Structure costs reinforcement to support Sales growth and transformation momentum
• Positive FX impact on PRO +€39m with US Dollar and Chinese Yuan appreciation vs. Euro offsetting significant Turkish Lira depreciation.

Group share of Net PRO was €1,438m, +32% reported vs. H1 FY21 and the Group share of Net Profit was €1,390m, +44% reported, reflecting increase in Profit from Recurring Operations, lower non-recurring operating items, lower financial expenses and increase in Corporate Income Tax.

Excellent Earnings Per Share +33%, reflecting growth in PRO and positive impact of FY22 Share buy-back.

FREE CASH FLOW AND DEBT

Very strong H1 cash conversion with Recurring Free Cash Flow at €1,383m, +39%. Cash generation supported by strong growth in Profit from Recurring Operations. Seasonal Working Capital requirements in line with business growth.

The average Cost of debt stood at 2.2% vs. 3.2% in H1 FY21 following successful bond refinancings.

Net debt increased by €471m vs. 30 June 2021 to €7,923m. The Net Debt/EBITDA ratio at average rate² was 2.4x at 31 December 2021.

OUTLOOK

In an ongoing volatile environment with potential disruptions of Covid-19, Pernod Ricard expects for FY22:

Continued On-Trade rebound, Off-trade resilience and Travel Retail gradual recovery driving strong diversified Sales momentum across regions

Dynamic topline driving operating margin expansion albeit moderating vs. H1, with increased investments to fuel growth momentum

Continued implementation of Transform & Accelerate, including digital transformation to develop Pernod Ricard into a Conviviality Platform

Strong cash generation while upweighting investments behind key Capex and Strategic inventories

Acceleration of share buy-back programme with additional c. €250m (total of c. €750m for FY22)

Alexandre Ricard, Chairman and Chief Executive Officer, stated,

“The execution of our Transform & Accelerate strategy is delivering an excellent and broad-based performance in the first half, with brand share gains in most countries and with all our Must-Win Markets showing very strong growth. I take the opportunity to praise the engagement and performance of our teams throughout the world, who have relentlessly accomplished outstanding work, in an environment still largely disrupted on many fronts by the Covid crisis.

Despite the ongoing volatile environment, we expect for FY22 strong Sales growth across regions, with continued On-Trade rebound, Off-trade resilience and a gradual Travel Retail recovery. We will increase investments to fuel growth momentum.

We remain focused on executing our strategy, progressing on our Sustainability and Responsibility journey and accelerating our digital transformation. A successful mix of robust fundamentals, the dedication of our teams and our portfolio of brands, has yielded a very strong set of results and seen us through this crisis, emerging even stronger.”

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.

A detailed presentation of H1 FY22 Sales and Results can be downloaded from our website: www.pernod-ricard.com

Limited review procedures have been carried out by the Statutory Auditors on the condensed half-yearly consolidated financial statements. The Statutory Auditors’ Review Report on the Half-yearly Financial Information is being issued.

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.

Profit from recurring operations

Profit from recurring operations corresponds to the operating profit excluding other non-current operating income and expenses.

About Pernod Ricard

Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales amounting to €8,824 million in fiscal year FY21. The Group, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive portfolios in the industry with over 240 premium brands distributed across more than 160 markets. Pernod Ricard’s portfolio includes 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, New Zealand Wines, Campo Viejo, Mumm Sparkling and Kenwood wines. Pernod Ricard’s strategy focuses on investing in long-term and sustainable growth for all its stakeholders, remaining true to its founding values: entrepreneurial spirit, mutual trust, and strong sense of ethics. The Group’s decentralised organisation empowers its 18,500 employees to be on-the-ground ambassadors of its vision of “Créateurs de Convivialité”. Pernod Ricard 2030 Sustainability and Responsibility roadmap “Good Times from a Good Place” is integrated into all its activities from grain to glass, and Pernod Ricard is recognised as a UN Global Compact LEAD participant for its contribution to the United Nations Sustainable Development Goals (SDGs). Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.

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

Strategic International Brands’ organic Sales growth

		Volumes H1 FY22		Organic Net Sales growth H1 FY22		of which Volume		of which Price/mix
		(in 9Lcs millions)
Absolut		6.9		+23%		+22%		+1%
Chivas Regal		2.6		+23%		+25%		(2)%
Ballantine's		5.3		+29%		+25%		+4%
Ricard		2.4		+2%		+5%		(3)%
Jameson		5.8		+22%		+22%		+0%
Havana Club		2.4		+12%		(1)%		+12%
Malibu		2.6		+9%		+5%		+4%
Beefeater		2.0		+31%		+27%		+4%
Martell		1.7		+11%		+14%		(3)%
The Glenlivet		0.9		+21%		+16%		+5%
Royal Salute		0.1		+41%		+40%		+1%
Mumm		0.6		+24%		+18%		+6%
Perrier-Jouët		0.2		+51%		+38%		+13%
Strategic International Brands		33.3		+19%		+18%		+2%

Sales Analysis by Period and Region

Net Sales (€ millions)

H1 FY21

H1 FY22

Change

Organic Growth

Group Structure

Forex impact

Europe

1,456

29.2%

1,797

30.2%

+341

+23%

+300

+21%

+19

+1%

+22

+2%

Americas

1,402

28.1%

1,638

27.5%

+235

+17%

+196

+14%

+17

+1%

+22

+2%

Asia / Rest of World

2,127

42.7%

2,524

42.4%

+397

+19%

+338

+16%

+0

+0%

+60

+3%

World

4,985

100.0%

5,959

100.0%

+974

+20%

+834

+17%

+36

+1%

+104

+2%

Net Sales (€ millions)

Q2 FY21

Q2 FY22

Change

Organic Growth

Group Structure

Forex impact

Europe

811

29.5%

1,005

31.0%

+193

+24%

+156

+19%

+19

+2%

+19

+2%

Americas

729

26.5%

864

26.7%

+135

+19%

+107

+15%

+0

+0%

+28

+4%

Asia / Rest of World

1,209

44.0%

1,373

42.3%

+163

+13%

+122

+10%

+0

+0%

+41

+3%

World

2,750

100.0%

3,242

100.0%

+492

+18%

+386

+14%

+19

+1%

+87

+3%

Net Sales (€ millions)

Q1 FY21

Q1 FY22

Change

Organic Growth

Group Structure

Forex impact

Europe

645

28.8%

793

29.2%

+148

+23%

+144

+22%

+0

+0%

+4

+1%

Americas

673

30.1%

773

28.5%

+100

+15%

+89

+13%

+17

+3%

(6)

(1)%

Asia / Rest of World

918

41.0%

1,152

42.4%

+234

+26%

+215

+23%

+0

+0%

+19

+2%

World

2,236

100.0%

2,718

100.0%

+482

+22%

+448

+20%

+17

+1%

+17

+1%

Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group

Summary Consolidated Income Statement

(€ millions)		H1 FY21		H1 FY22		Change
Net sales		4,985		5,959		20%
Gross Margin after logistics costs		3,021		3,640		20%
Advertising and promotion expenses		(706)		(840)		19%
Contribution after A&P expenditure		2,315		2,801		21%
Structure costs		(721)		(803)		11%
Profit from recurring operations		1,595		1,998		25%
Financial income/(expense) from recurring operations		(151)		(102)		-32%
Corporate income tax on items from recurring operations		(337)		(436)		29%
Net profit from discontinued operations, non-controlling interests and share of net income from associates		(20)		(21)		8%
Group share of net profit from recurring operations		1,087		1,438		32%
Other operating income & expenses		(61)		(2)		NA
Financial income/(expense) from non-recurring operations		(103)		(32)		NA
Corporate income tax on items from non recurring operations		44		(16)		NA
Non controlling interests (non-recurring)				3
Group share of net profit		966		1,390		44%
Non-controlling interests		18		21		17%
Net profit		984		1,411		43%

Profit from Recurring Operations by Region

World

(€ millions)

H1 FY21

H1 FY22

Change

Organic Growth

Group Structure

Forex impact

Net sales

4,985

100.0%

5,959

100.0%

+974

+20%

+834

+17%

+36

+1%

+104

+2%

Gross margin

3,021

60.6%

3,640

61.1%

+619

+20%

+532

+18%

+17

+1%

+69

+2%

Advertising & promotional spend

(706)

14.2%

(840)

14.1%

(134)

+19%

(111)

+16%

(4)

+1%

(19)

+3%

Contribution after A&P spend

2,315

46.4%

2,801

47.0%

+485

+21%

+422

+18%

+13

+1%

+51

+2%

Profit from recurring operations

1,595

32.0%

1,998

33.5%

+403

+25%

+355

+22%

+8

+1%

+39

+2%

Americas

(€ millions)

H1 FY21

H1 FY22

Change

Organic Growth

Group Structure

Forex impact

Net sales

1,402

100.0%

1,638

100.0%

+235

+17%

+196

+14%

+17

+1%

+22

+2%

Gross margin

909

64.8%

1,070

65.3%

+161

+18%

+123

+14%

+11

+1%

+27

+3%

Advertising & promotional spend

(250)

17.8%

(264)

16.1%

(14)

+6%

(7)

+3%

(3)

+1%

(5)

+2%

Contribution after A&P spend

659

47.0%

806

49.2%

+147

+22%

+117

+18%

+8

+1%

+23

+3%

Profit from recurring operations

459

32.7%

595

36.3%

+136

+30%

+110

+24%

+6

+1%

+20

+4%

Asia / Rest of the World

(€ millions)

H1 FY21

H1 FY22

Change

Organic Growth

Group Structure

Forex impact

Net sales

2,127

100.0%

2,524

100.0%

+397

+19%

+338

+16%

+0

+0%

+60

+3%

Gross margin

1,232

57.9%

1,458

57.8%

+226

+18%

+198

+16%

+0

+0%

+29

+2%

Advertising & promotional spend

(291)

13.7%

(361)

14.3%

(70)

+24%

(58)

+20%

(0)

+0%

(12)

+4%

Contribution after A&P spend

940

44.2%

1,097

43.5%

+157

+17%

+140

+15%

(0)

(0)%

+17

+2%

Profit from recurring operations

674

31.7%

814

32.3%

+140

+21%

+128

+19%

+0

+0%

+12

+2%

Europe

(€ millions)

H1 FY21

H1 FY22

Change

Organic Growth

Group Structure

Forex impact

Net sales

1,456

100.0%

1,797

100.0%

+341

+23%

+300

+21%

+19

+1%

+22

+2%

Gross margin

881

60.5%

1,112

61.9%

+231

+26%

+211

+24%

+7

+1%

+14

+2%

Advertising & promotional spend

(164)

11.3%

(214)

11.9%

(50)

+30%

(46)

+28%

(1)

+1%

(2)

+1%

Contribution after A&P spend

717

49.2%

898

50.0%

+181

+25%

+165

+23%

+5

+1%

+11

+2%

Profit from recurring operations

461

31.7%

589

32.7%

+127

+28%

+117

+25%

+3

+1%

+8

+2%

Note: Bulk Spirits are allocated by Region according to the Regions’ weight in the Group

Foreign Exchange Impact

Forex impact H1 FY22 (€ millions)				Average rates evolution				On Net Sales		On Profit from Recurring Operations
				H1 FY21	H1 FY22	%
US dollar		USD		1.18	1.16	(1.7)%		+23		+17
Chinese yuan		CNY		7.99	7.47	(6.6)%		+56		+33
Indian rupee		INR		87.48	86.52	(1.1)%		+7		+2
Russian rouble		RUB		88.61	84.86	(4.2)%		+8		+6
Argentinian peso		ARS		90.61	114.76	+26.7%		(10)		(4)
Turkish Lira		TRL		8.94	11.42	+27.8%		(19)		(19)
Pound sterling		GBP		0.90	0.85	(5.8)%		+14		(15)
Other								+25		+19
Total								+104		+39

Sensitivity of profit and debt to EUR/USD exchange rate

Estimated impact of a 1% appreciation of the USD
Impact on the income statement(1)	(€ millions)
Profit from recurring operations	+15
Financial expenses	(1)
Pre-tax profit from recurring operations	+14
Impact on the balance sheet	(€ millions)
Increase/(decrease) in net debt	+37
(1) Full-year effect

Balance Sheet

Assets (€ millions)		30/06/2021		12/31/2021
(Net book value)
Non-current assets
Intangible assets and goodwill		16,230		16,857
Tangible assets and other assets		3,963		4,146
Deferred tax assets		1,623		1,687
Total non-current assets		21,816		22,690
Current assets
Inventories		6,555		6,694
aged work-in-progress		5,373		5,446
non-aged work-in-progress		84		82
other inventories		1,098		1,166
Receivables (*)		1,126		2,233
Trade receivables		1,080		2,165
Other trade receivables		46		67
Other current assets		413		353
Other operating current assets		408		345
Tangible/intangible current assets		6		8
Tax receivable		141		77
Cash and cash equivalents and current derivatives		2,086		2,023
Total current assets		10,321		11,380
Assets held for sale		11		0
Total assets		32,147		34,070
				-
(*) after disposals of receivables of:		592		919
Liabilities and shareholders’ equity		30/06/2021		12/31/2021
(€ millions)
Group Shareholders’ equity		14,829		15,757
Non-controlling interests		246		265
of which profit attributable to non-controlling interests		13		21
Total Shareholders’ equity		15,075		16,022
Non-current provisions and deferred tax liabilities		3,555		3,650
Bonds non-current		8,787		8,236
Lease liabilities - non current		405		402
Non-current financial liabilities and derivative instruments		108		97
Total non-current liabilities		12,854		12,385
Current provisions		163		151
Operating payables		2,337		2,976
Other operating payables		1,134		886
of which other operating payables		724		828
of which tangible/intangible current payables		410		58
Tax payable		282		423
Bonds - current		70		785
Lease liabilities - current		103		105
Current financial liabilities and derivatives		128		337
Total current liabilities		4,218		5,663
Liabilities held for sale		0		0
Total liabilities and shareholders' equity		32,147		34,070

Analysis of Working Capital Requirement

(€ millions)		June 2020		December 2020		June 2021		December 2021			H1 FY21 WC change*		H1 FY22 WC change*
Aged work in progress		5,084		5,135		5,373		5,446			67		21
Advances to suppliers for wine and ageing spirits		19		10		9		14			(8)		5
Payables on wine and ageing spirits		(108)		(161)		(93)		(147)			(47)		(53)
Net aged work in progress		4,995		4,984		5,289		5,313			11		(28)
Trade receivables before factoring/securitization		1,375		2,508		1,672		3,085			1,173		1,360
Advances from customers		(38)		(18)		(21)		(31)			19		(8)
Other receivables		343		354		445		399			27		(40)
Other inventories		1,006		932		1,098		1,166			(62)		10
Non-aged work in progress		76		72		84		82			(2)		(3)
Trade payables and other		(2,364)		(2,870)		(2,946)		(3,626)			(554)		(593)
Gross operating working capital		398		978		331		1,075			601		725
Factoring/Securitization impact		(513)		(750)		(592)		(919)			(246)		(315)
Net Operating Working Capital		(115)		227		(261)		155			355		410
Net Working Capital		4,879		5,211		5,028		5,468			366		382
* at average rates		Of which recurring variation									350		374
		Of which non recurring variation									16		8

Net Debt

(€ millions)		30/06/2021				12/31/2021
		Current	Non-current	Total		Current	Non-current	Total
Bonds		70	8,787	8,857		785	8,236	9,021
Syndicated loan		-	-	-		-	-	-
Commercial paper		7	-	7		170	-	170
Other loans and long-term debts		115	108	222		163	94	258
Other financial liabilities		122	108	229		333	94	428
Gross Financial debt		192	8,894	9,086		1,118	8,330	9,448
Fair value hedge derivatives – assets		-	(22)	(22)		(10)	(4)	(14)
Fair value hedge derivatives – liabilities		-	-	-		-	-	-
Fair value hedge derivatives		-	(22)	(22)		(10)	(4)	(14)
Net investment hedge derivatives – assets		-	(43)	(43)		-	(22)	(22)
Net investment hedge derivatives – liabilities		-	-	-		-	-	-
Net investment hedge derivatives		-	(43)	(43)		-	(22)	(22)
FINANCIAL DEBT AFTER HEDGING		192	8,830	9,022		1,108	8,305	9,413
Cash and cash equivalents		(2,078)	-	(2,078)		(1,997)	-	(1,997)
NET FINANCIAL DEBT EXCLUDING LEASE DEBT		(1,886)	8,830	6,944		(889)	8,305	7,416
Lease Debt		103	405	508		105	402	507
NET FINANCIAL DEBT		(1,783)	9,235	7,452		(784)	8,707	7,923

Change in Net Debt

(€ millions)		12/31/2020		12/31/2021
Operating profit		1,534		1,995
Depreciation and amortisation		179		189
Net change in impairment of goodwill, PPE and intangible assets		6
Net change in provisions		(31)		(22)
Retreatment of contributions to pension plans acquired from Allied Domecq and others
Changes in fair value on commercial derivatives and biological assets		(5)		(3)
Net (gain)/loss on disposal of assets		2		(3)
Share-based payments		15		17
Self-financing capacity before interest and tax		1,699		2,173
Decrease / (increase) in working capital requirements		(364)		(382)
Net interest and tax payments		(347)		(313)
Net acquisitions of non financial assets and others		(153)		(157)
Free Cash Flow		835		1,320
of which recurring Free Cash Flow		995		1,383
Net acquisitions of financial assets and activities, contributions to pension plans acquired from Allied Domecq and others		(33)		(464)
Dividends paid		(699)		(820)
(Acquisition) / Disposal of treasury shares and others		(25)		(292)
Decrease / (increase) in net debt (before currency translation adjustments)		78		(256)
Foreign currency translation adjustment		406		(168)
Non cash impact on lease liabilities		(40)		(47)
Decrease / (increase) in net debt (after currency translation adjustments and IFRS 16 non cash impacts)		443		(471)
Initial net debt		(8,424)		(7,452)
Final net debt		(7,980)		(7,923)

Net Debt Maturity at 31 December 2021

€ billions

[Missing charts are available on the original document and on www.pernod-ricard.com]

Strong liquidity position at €5.4bn as of 31st December 2021, of which €3.4bn credit lines undrawn

Gross debt after hedging at 31st December 2021 (excluding lease liabilities):

• 9% floating rate and 91% fixed rate
• 60% in EUR and 40% in USD

Bond details at 31 December 2021

Currency		Par value		Coupon		Issue date		Maturity date
EUR		€ 1,500 m o/w:				10/24/2019
		€ 500 m		0.000%				10/24/2023
		€ 500 m		0.500%				10/24/2027
		€ 500 m		0.875%				10/24/2031
		€ 650 m		2.125%		9/29/2014		9/27/2024
		€ 1,500 m o/w:				4/1/2020
		€ 750 m		1.125%				4/7/2025
		€ 750 m		1.750%				4/8/2030
		€ 500 m o/w:				4/27/2020
		€ 250 m		1.125%				4/7/2025
		€ 250 m		1.750%				4/8/2030
		€ 600 m		1.500%		5/17/2016		5/18/2026
		€ 500 m		0.125%		10/4/2021		10/4/2029
USD		$ 1,650 m o/w:				1/12/2012
		$ 800 m		4.250%				7/15/2022
		$ 850 m		5.500%				1/15/2042
		$ 600 m		3.250%		6/8/2016		6/8/2026
		$ 2,000 m o/w:
		$ 600 m		1.250%		10/1/2020		4/1/2028
		$ 900 m		1.625%				4/1/2031
		$ 500 m		2.750%				10/1/2050

Net Debt / EBITDA ratio evolution

		Closing rate	Average rate(1)
EUR/USD rate 30/06/2021 -> 31/12/2021		1.19 -> 1.13	1.19 -> 1.18
Ratio at 30/06/2021		2.6	2.6
EBITDA & cash generation excl. Group structure effect and forex impacts		-0.4	-0.4
Group structure and forex impacts		0.2	0.1
Ratio at 31/12/2021		2.4	2.4
(1) Last-twelve-month rate

Diluted Earnings Per Share (EPS) calculation

(x 1,000)	HY FY21	HY FY22
Number of shares in issue at end of period	261,877	261,877
Weighted average number of shares in issue (pro rata temporis)	262,315	261,877
Weighted average number of treasury shares (pro rata temporis)	(1,654)	(1,656)
Dilutive impact of stock options and performance shares	816	609
Number of shares used in diluted EPS calculation	261,478	260,829
(€ millions and €/share)	HY FY21	HY FY22	reported △
Group share of net profit from recurring operations	1,087	1,438	32.3%
Diluted net earnings per share from recurring operations	4.16	5.51	32.6%

Upcoming Communications

Date1			Event
28 April 2022			Q3 FY22 Sales conference call
10 May 2022			North America conference call
8 June 2022			Capital Market Day in Paris
24 June 2022			Asia conference call
1 The above dates are indicative and are liable to change

---

¹ PRO: Profit from Recurring Operations
² vs. H1 FY20 at constant FX
³ Based on average EUR/USD rate: 1.18 in calendar year 2021

View source version on businesswire.com: https://www.businesswire.com/news/home/20220209006171/en/

Florence Tresarrieu / Global SVP Investors Relations and Treasury +33 (0) 1 70 93 17 03

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 were Pernod Ricard's sales figures for H1 FY22?

Pernod Ricard reported sales of €5,959m for H1 FY22, marking a 17% organic growth.

How much did Pernod Ricard's net profit increase in H1 FY22?

The net profit for Pernod Ricard increased by 32% to €1,390m in H1 FY22.

What is the impact of the US Dollar on Pernod Ricard's sales?

Pernod Ricard experienced a favorable FX impact primarily due to the strength of the US Dollar and Chinese Yuan against the Euro.

What is the forecast for Pernod Ricard's growth in FY22?

Pernod Ricard expects continued sales growth across regions in FY22, supported by its Transform & Accelerate strategy.

What are some challenges faced by Pernod Ricard as reported in the press release?

The decline in Strategic Wines by 6% and an increase in net debt to €7,923m are noted challenges.