Pernod Ricard SA · EURONEXT:RI
Pernod Ricard SA — 9M FY2012/13 Earnings Presentation
39 slides from Pernod Ricard SA's earnings presentation, Apr 25, 2013
Slide 1: Sales to 31 March 2013
Sales to 31 March 2013 25 April 2013 This presentation can be downloaded from our website: www.pernod-ricard.com
Slide 2: Contents
Contents - Overall analysis - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 2
Slide 3: Highlights at end March
Highlights at end March Good resilience of the business Continued sustained value growth(1) of the strategic brands Portfolio Very favourable price/mix (+6%(1)) for the Top 14 As announced earlier this year macroeconomic environment is more challenging overall and remains contrasted Growth remained
Slide 4: Sales (9 months)
Sales (9 months) Excluding French pre-buying Group € 6,650 m +4%(1) +4%(1) reported growth: +5% Top 14 € 4,161 m +5%(1) +6%(1) Emerging markets(2)(3) € 2,788 m +10%(1) +10%(1) Mature markets(3) € 3,861 m -1%(1) +0%(1) (1) Organic growth (2) List of emerging markets available in the appendix (3) The
Slide 5: Change in sales (9 months)
Change in sales (9 months) Sales for the 9 months to 31 March 2013: +5% +220 (52) +167 (€ millions) +4% -1% +3% 6,650 6,315 9-month sales 11/12 Organic growth Group structure Forex impact 9-month sales 12/13 Organic growth: +4% Limited Group structure impact primarily due to the disposal of certain
Slide 6: Change in sales (Q3)
Change in sales (Q3) Sales for the 3 months to 31 March: +2% +104 (12) (50) (€ millions) +6% -1% -3% 1,701 1,743 Q3 11/12 sales Organic growth Group structure Forex impact Q3 12/13 sales Organic growth: +6% (+3% excluding French pre-buying) Slowdown in China in Q3 (wholesaler depletions stable durin
Slide 7: Contents
Contents - Overall analysis - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 7
Slide 8: Organic sales growth by region (9 months)
Organic sales growth by region (9 months) % total 9 months sales FY 9 months 2012/13(1) 9 months 2011/12(1) 2012/13(1) excl. French 2012/13 pre-buying Sustained growth, ASIA-ROW 42% +15% +8% +8% albeit at a more moderate pace Solid growth AMERICAS 26% +6% +6% +6% (2) driven by Premium brands EUROPE
Slide 9: Asia - Rest of the World: analysis by category
ASIA - REST OF THE WORLD Sustained growth, albeit at a more moderate pace Analysis by category (9 months) 9 months 9 months Organic (€ millions) ∆ 2011/12 2012/13 ∆ SALES 2,474 2,762 +12% +8% Martell (+18%(1)): strong growth, boosted by a price/mix that remains very significant (+8%(1)) and shipment
Slide 10: Asia - Rest of the World: analysis by market
ASIA - REST OF THE WORLD Sustained growth, albeit at a more moderate pace Analysis by market (9 months) China: • continued dynamic growth (+11%(1)) despite a slowdown in Q3 (stable Chinese New Year and significant shipments in HY1) • ongoing solid performance of Martell (boosted by shipments to whol
Slide 11: Asia - Rest of the World: analysis by market
ASIA - REST OF THE WORLD Sustained growth, albeit at a more moderate pace Analysis by market (9 months) South Korea: • continued modest increase in sales due to purchases ahead of price hikes in Q3 2012/13 • strong growth of Absolut driven by the development of the modern on-trade but whiskey market
Slide 12: Americas: analysis by category
AMERICAS Solid growth driven by Premium brands Analysis by category (9 months) 9 months 9 months Organic (€ millions) ∆ 2011/12 2012/13 ∆ SALES 1,589 1,708 +7% +6% Top 14 (+7%(1)): remains a key growth driver with acceleration during the period • growth driven by Jameson, The Glenlivet, Chivas and M
Slide 13: Americas: analysis by market, US
AMERICAS Solid growth driven by Premium brands Analysis by market (9 months): US sales +7%(1) Solid growth Consumption remains dynamic Top 14 +8%(1), Good overall performance of main growth driver other brands Pernod Ricard Avión, Plymouth, Aberlour Value performance(2) Volumes (shipments): +4% Prom
Slide 14: Americas: other markets
AMERICAS Solid growth driven by Premium brands Analysis by market (9 months): other markets Brazil: slowdown in market growth • decline in shipments primarily due to application of tax reform concerning local “VAT” leading to wholesaler destocking • continued underlying growth of strategic brands (N
Slide 15: Europe (excluding France): analysis by category
EUROPE (EXCLUDING FRANCE) Strong growth in the East, moderate decline in West Analysis by category (9 months) 9 months 9 months Organic (€ millions) ∆ 2011/12 2012/13 ∆ SALES 1,656 1,662 stable stable Top 14 (+2%(1)) • still growing thanks to Jameson, Chivas, Havana Club, Beefeater and Absolut • dec
Slide 16: Europe (excluding France): analysis by market
EUROPE (EXCLUDING FRANCE) Strong growth in the East, moderate decline in West Analysis by market (9 months) Eastern Europe (+11%(1)): continued sustained growth • Russia: principal market contributing to growth (+19%(1)) due to Jameson, ArArAt, Chivas, Olmeca and Ballantine’s Favourable impact from
Slide 17: France: analysis (9 months)
FRANCE Gradual improvement of the business as anticipated Analysis (9 months) 9 months 9 months Organic Excl. (€ millions) ∆ 2011/12 2012/13 ∆ pre-buying SALES 595 518 -13% -13% -5% Significant decline in sales (-13%(1)), largely exacerbated by technical and conjonctural effects specified in HY1 com
Slide 18: Sales analysis by region
Sales analysis by region Increase in relative significance of Asia-RoW and emerging markets(2) 9 months 2011/12(1) 9 months 2012/13(1) 9% 8% 39% 42% 26% 25% 25% 26% Asia-RoW America Europe (excl. France) France 9 months 2011/12 9 months 2012/13 40% 42% 60% 58% Mature markets Emerging markets (2) (1)
Slide 19: Contents
Contents - Overall analysis - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 19
Slide 20: Organic sales growth by category
Organic sales growth by category Growth driven by the Top 14 9 months % total sales FY 9 months 2012/13(1) 9 months (1) (1) 2012/13 2011/12 2012/13 excluding French pre-buying TOP 14 SPIRITS & CHAMPAGNE 63% +10% +5% +6% PRIORITY PREMIUM WINES 5% +4% +3% +3% 18 KEY LOCAL BRANDS 17% +8% +5% +6% OTHER
Slide 21: Top 14 Spirits & Champagne (9 months)
Top 14 Spirits & Champagne (9 months) Top 14 Spirits & Champagne Volume: -1% Excluding French pre-buying (1) Volume: stable Sales: +5% Sales: +6% (1) % of Group sales: 63% (1) Organic growth 21
Slide 22: Top 14: Stronger price/mix
Top 14: Stronger price/mix (1) (2) Sales TOP 14 (1) (1) Sales Volumes Price/mix excl. French (nine months at end March) pre-buying ABSOLUT 3% 1% 3% CHIVAS REGAL 3% -3% 6% BALLANTINE’S -7% -6% -1% -6% RICARD -17% -18% 1% -7% JAMESON 16% 9% 6% MALIBU 1% 0% 1% 2% HAVANA CLUB 5% 4% 1% BEEFEATER 6% 3% 3%
Slide 23: Top 14: main growth driver
Top 14: main growth driver Continued very favourable price/mix (+6%(1)) Very good performance of Martell (+16%(1), including +11%(1) due to price/mix) boosted by shipments to wholesalers exceeding depletions in China Excellent performance of Jameson (+16%(1)) which continues to report double-digit g
Slide 24: 18 key local brands and Priority Premium Wines
18 key local brands and Priority Premium Wines (9 months) 18 key local brands Priority Premium Wines Volume: +6% Volume: stable Sales: +5%(1) Sales: +3%(1) excl. French pre-buying +6%(1) 5% of Group sales 17% of Group sales Good overall performance Continued implementation of high-value strategy and
Slide 25: Contents
Contents - Overall analysis - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 25
Slide 26: Refining the packaging of our priority brands
Refining the packaging of our priority brands Mumm Malibu Malibu New bottle reflects the fun and energy of Malibu and adds a contemporary, modern feel The fresh, clear spirit is reflected in the clear bottom window, thereby maximizing shelf appeal Chivas Chivas 18 by Pininfarina Limited edition intr
Slide 27: Launching new products for evolving consumer trends
Launching new products for evolving consumer trends 51 Rosé Lillet Rosé 51 Rosé Anis with the addition of berry extracts. Launched mid-March and available nationally in key retailers. Supported with massive tasting campaign. Lillet Rosé Rolled out in the French market to conquer the aperitif occasio
Slide 28: Food pairing
Food pairing Jacob’s Creek Ricard Jacob’s Creek Kotobuki Wines Tailor-made sushi wine created and endorsed by a leading Japanese sushi chef for a unique dining experience The Glenlivet Le Ricard du Jour On-trade concept developed specifically for restaurants pairs Ricard with a starter. Activation s
Slide 29: Deepening partnerships
Deepening partnerships Jacob’s Creek Mumm Jacob’s Creek & tennis Celebrating the fourth year as Associate Sponsor of the Australian Open Mumm & Formula One Event raises brand visibility and awareness across diverse media. Heightened visibility of Mumm on the podium Launch of Open Series 2 with André
Slide 30: Building the range
Building the range Avión Pacific Pacific Menthe Fraîche New Fresh Mint flavour enhances an Avión Espresso already successful range Building upon the success of the award-winning Avión Silver, the 2nd most successful Absolut ultra-premium spirit launch in US history, Avión Espresso embodies Absolut H
Slide 31: Contents
Contents - Overall analysis - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 31
Slide 32: Conclusion and outlook FY 2012/13
Conclusion and outlook FY 2012/13 Good resilience of the business, in a less favourable and still contrasted macroeconomic environment, as announced at the beginning of the year Group’s growth drivers remain unchanged Premiumisation and Innovation Top 14 and Indian whiskies Emerging markets(1) and U
Slide 33: Future communications
Future communications DATE EVENT 25 June 2013 Europe conference call 29 August 2013 2012/13 full-year sales and results 33
Slide 34: Contents
Contents - Overall analysis - Growth by region - Growth by brand - Marketing initiatives and innovation - Conclusion and outlook - Appendices 34
Slide 35: Emerging markets
Emerging markets Asia-Rest of World Americas Europe Algeria Malaysia Argentina Albania Angola Maldives Bolivia Armenia Cambodia Mauritius Brazil Azerbaijan Cameroon Morocco Caribbean Balkans China Mozambique Chile Belarus Congo Nigeria Colombia Bosnia Egypt Persian Gulf Costa Rica Bulgaria Ethiopia
Slide 36: Top 14 organic growth
Top 14 organic growth Net Sales organic Volume growth Price/mix growth Absolut 3% 1% 3% Chivas Regal 3% -3% 6% Ballantine's -7% -6% -1% Ricard -17% -18% 1% Jameson 16% 9% 6% Malibu 1% 0% 1% Beefeater 6% 3% 3% Kahlua 0% -4% 3% Havana Club 5% 4% 1% Martell 16% 5% 11% The Glenlivet 21% 17% 4% Royal Sal
Slide 37: Sales analysis by region
Sales analysis by region Net Sales HY1 2011/12 HY1 2012/13 Change Organic Growth Group Structure Forex impact (€ millions) France 517 11.2% 374 7.6% (143) -28% (143) -28% (0) 0% 0 0% Europe excl. France 1,232 26.7% 1,245 25.4% 14 1% (7) -1% (4) 0% 24 2% Americas 1,166 25.3% 1,282 26.1% 116 10% 73 6%
Slide 38: Foreign Exchange Effect
Foreign Exchange Effect Forex impact YTD March 2012/13 Average rates evolution On Net (€ millions) Sales 2011/12 2012/13 % US dollar USD 1.36 1.29 -5.0% 75 Chinese yuan CNY 8.63 8.09 -6.3% 54 Korean won KRW 1.52 1.42 -6.4% 14 Pound sterling GBP 0.86 0.82 -4.6% 14 Australian dollar AUD 1.31 1.24 -5.0
Slide 39: Group Structure Effect
Group Structure Effect Group structure YTD March 2012/13 On Net Sales (€ millions) Canadian activities (10) Scandinavian activities (8) Other (34) Total Group Structure (52) 39