Pernod Ricard Sa · EURONEXT:RI
Pernod Ricard Sa — Corporate Update (March 2019)
21 slides from Pernod Ricard Sa's corporate update, Mar 19, 2019
Slide 1: Regional conference call
Regional conference call Gilles Bogaert Chairman & CEO March 19th, 2019 1
Slide 2: Gilles Bogaert, Chairman and CEO, Pernod Ricard EMEA & LATAM
GILLES BOGAERT Chairman and CEO, Pernod Ricard EMEA & LATAM Gilles Bogaert, born in 1969, graduated in 1991 from the “Ecole Supérieure de Commerce de Paris - ESCP” (Graduate Management School of Paris). After 4 years in Arthur Andersen, he joined Pernod Ricard in July 1995 as Internal Auditor. In No
Slide 3: Pernod Ricard EMEA & LATAM in a nutshell
PERNOD RICARD EMEA & LATAM In a nutshell WESTERN EUROPE CENTRAL & EASTERN EUROPE 5 Management Entities 2 Management Entities Gin Hub Brand Company 7 Production sites 11 Management Entities 5 Production sites 51 Market Companies Does not include France, Ireland 19 Production sites 29% of Group Sales
Slide 4: Solid H1 organic sales growth with good operating leverage
PERNOD RICARD EMEA & LATAM Solid H1 organic sales growth with good operating leverage Organic sales Solid H1 FY19 topline growth (+3%) despite soft Western Europe Strong operating profit organic growth driven by: Operating • Very good price/mix (+5%) profit • Tight resource management Operating Deli
Slide 5: Clear brands/markets strategic roadmap already delivering solid and diversified growth
STRATEGIC UPDATE Clear brands/markets strategic roadmap already delivering solid and diversified growth… Accelerate growth and gain share in LATAM, Consolidate our leadership Grow Jameson and Absolut and Africa and Middle East in Central and Eastern Europe Area, leverage the Aperitif opportunity lev
Slide 6: Supported by clear transversal initiatives
STRATEGIC UPDATE … supported by clear transversal initiatives REVENUE GROWTH MANAGEMENT A&P EFFICIENCIES RTM EFFICIENCIES Price A&P arbitration by market Constantly adapt and expand our Promotional effectiveness based on a strategic classification of markets Route-to-Market / Route-to- Trade terms C
Slide 7: H1 business update by brand category
H1 BUSINESS UPDATE BY BRAND CATEGORY | Good growth of Strategic International Brands, very dynamic Specialty Brands, Wine impacted by value strategy and high basis of comparison Strategic International Brands +5% Solid performance driven by Whisky, Absolut and Beefeater Good price effect Broad doubl
Slide 8: Innovation driving half of sales growth, continued strong growth of Prestige
H1 BUSINESS UPDATE | Strong contribution of Innovation driving half of Sales growth, continued strong growth of Prestige Acceleration of innovation Continued strong growth of Prestige Beefeater Pink Beefeater Blood Orange • Strong start benefitting from the • Launched in February in the UK Greece Au
Slide 9: Russia: continued strong performance
Russia: continued strong performance Third consecutive year of strong growth Continued focus on Strategic Premium+ brands, while leveraging a strong portfolio of local brands Strong H1 Sales growth (+7%) in line with underlying depletion trends • Strong growth of Whiskies driven by Ballantine’s • Do
Slide 10: Poland: Strong performance driven by Whiskies and Prestige
Poland: Strong performance driven by Whiskies and Prestige Successful premiumisation strategy Pernod Ricard outperforming market (Value MAT market share +0.2pt) Solid H1 growth (+6%) driven by a successful premiumization strategy (+4% price/mix) • A continued momentum from Whiskies • A good performa
Slide 11: Turkey: very strong growth driven by pricing and volume
Turkey: very strong growth driven by pricing and volume, consolidating #1 Imported Spirits position Strong double digit growth in a tough economic and market context Significant price increases allowing to offset Turkish Lyra devaluation Solid volume growth with positive underlying trends in all cha
Slide 12: SSA: solid growth delivered thanks to an acceleration of growth relays
SSA: solid growth delivered thanks to an acceleration of growth relays (brands & markets) Excellent growth in Nigeria Soft H1 in other markets H1 Sales South Africa: soft H1 partially impacted by stock adjustment All Products x2 • Challenging environment, with a clear slowdown in Whisky and Vodka ca
Slide 13: SSA: pan-African campaigns and strong activations
SSA: solid growth delivered thanks to an acceleration of growth relays (brands & markets) Successful pan-African campaigns and strong activations Jameson – Taste that’s why Mumm – Olympe Rosé “Taste. That’s Why” campaign has been rolled out in South Africa Mumm Olympe Rosé aged in Cognac barrels, cr
Slide 14: Mexico: market share gains in key Premium categories
Mexico: market share gains in key Premium categories Underlying mid-single digit sell-out growth with market share gains in key Premium categories… Continuation of strategic transformation plan initiated a few years ago • Disposal of local brands (Caribe Cooler in March 2015 and Domecq brandies in M
Slide 15: Brazil: continuation of market share gains on Strategic International Brands
Brazil: continuation of market share gains on Strategic International Brands Solid growth on a high comparison basis LY Good H1 Sales (+6%) supported by continued performance of Imported brands • Exceptional growth of Beefeater in a booming Gin category H1 Sales H1 Sales • Fast growth of Passport in
Slide 16: Spain: defending our leadership
Spain: defending our leadership Modest decline in a now stable market Market deceleration (+0.2% Value MAT) • Premium Dry Gin first decline in 8 years • Premium Whisky also in negative territory In this context, modest H1 sales decline (-2%) due to Beefeater and Ballantine’s decline, however: • Seag
Slide 17: Germany: maintaining our leadership in a tough commercial environment
Germany: maintaining our leadership in a tough commercial environment H1 decline following commercial dispute and Ramazzotti price increase H1 impacted by adverse effects • Ramazzotti decline following significant price increase H1 Sales H1 Sales • Commercial dispute (expected to continue in H2) • H
Slide 18: UK: PR outperforming market in Spirits
UK: PR outperforming market in Spirits Strong Spirits performance but overall H1 decline driven by Wines (value strategy and high comparison basis) Implementation of a value strategy on Wines to improve margins • Focus on Jacob’s Creek higher styles • Less promotional activity on Campo Viejo (lappin
Slide 19: Fast track gin and tequila development (worldwide)
H1 BUSINESS UPDATE Fast track gin and tequila development (worldwide) House of Tequila H1 Sales H1 Sales Double-digit Double-digit performance performance Historical Brand Company of Olmeca and Altos brands Gin Hub now under the responsibility of Pernod Ricard UK since Integration of Avión and Del M
Slide 20: Conclusion
CONCLUSION ✓ Solid H1 performance, despite soft Western Europe, thanks to emerging markets fast development and margin improvement (strong price/mix and tight resources management) ✓ Clear strategic roadmap and many on-going initiatives to further improve performance: innovation, prestige, active po
Slide 21: Q&As
9 mF Pernod Ricard EMEA & LATAM Europe, Middle East, Africa & Latin America Q&As