Pernod Ricard: 1st Half 2004.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- Pernod Ricard Pernod Ricard (Euronext: RI) is a French company producing alcoholic beverages. Their most famous product, Pernod Anise (40% alcoholic volume) and Ricard Pastis, are both pastis, and often referred to as simply Ricard or Pernod. (Paris:PERP.P)
-- Wine and Spirits: Operating Profit up by 11.1% on
like-for-like basis
-- Group Net Profit: EUR 169 million (+4.7%)
-- Upward Revision of Growth Prospects for 2004
The Board of Directors of Pernod Ricard, meeting under the chairmanship of Patrick Ricard Ricard may mean:
Wine and Spirits The first half of 2004 on a like-for-like basis was marked by a sustained growth in sales (organic sales growth of 6%) and by a sharp rise in profitability (organic growth of operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of 11.1%). This was reflected in an improvement of 1.1 points in the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (with constant exchange rates). These results clearly illustrate the effectiveness of the strategy implemented by the Group. During this period, Pernod Ricard successfully continued to grow its premium brands throughout the world. Chivas "Chivas" may refer to:
It can also be used to refer to Places:
People with the surname Jameson:
In addition, the continued development of our portfolio is based on our distribution network, which is worldwide, and where costs rise slower than our sales. This provides an additional leverage to grow profitability (growth of 2.9% excluding the currency effect on structure costs). Asia/Rest of the World and America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. were the two principal drivers of organic growth of operating profit: these two regions generated in excess of 80% of the growth. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , in a contrasting environment,
nevertheless succeeded in retaining the dynamic growth in profit due to
a rebound rebound (rē´bownd),n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the second quarter. France, despite the market difficulties, saw its sales grow but operating profit fell mainly due to increased advertising and promotional expenditures. The currency effect on sales was a negative 3.2% but it was stronger on operating profit (-10.6% equivalent to a reduction of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 29.5 million). This arises from a pincer movement The pincer movement or double envelopment is a basic element of military strategy which has been used, to some extent, in nearly every war. The flanks of the opponent are attacked simultaneously in a pinching motion after the opponent has advanced towards the center of an between sales achieved in depreciating de·pre·ci·ate v. de·pre·ci·at·ed, de·pre·ci·at·ing, de·pre·ci·ates v.tr. 1. To lessen the price or value of. 2. To think or speak of as being of little worth; belittle. currency countries (US dollar and Asian currencies), and production and operating cots mainly incurred in appreciating currency countries (Euro, British Pound). Operating profit grew however by 0.4% to EUR 280 million and the operating margin was 18.3% (19.7% with constant exchange rates compared to 18.6% at 30 June June: see month. 2003). Consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operating profit amounted to EUR 282 million with only EUR 2 million coming from "Other Activities." Finance costs continued to decline (by 28%) due to the reduction in the average cost of debt (0.30 basis points to 3.35%) and to lower debt. This performance enabled the refinancing Refinancing An extension and/or increase in amount of existing debt. in August 2004 of the bank loan related to the Seagram The Seagram Company Ltd. was a large corporation headquartered in Montreal, Quebec, Canada that was the largest distiller of alcoholic beverages in the world. Toward the end of its independent existence it also controlled various entertainment and other business ventures. acquisition on very advantageous terms (a banking margin of 25 basis points compared to 55 previously). These factors thus enabled Pernod Ricard to improve its profit before tax by 5.8% to EUR 243 million despite a significant currency effect. Group net profit was up by 4.7% to EUR 169 million, the profit after tax (before exceptionals and goodwill amortization) grew by the same percentage to EUR 175 million. Prospects Commenting on these results, Patrick Ricard stated: "I am delighted with the very good performance achieved on the first half year and the strong growth of our premium brands." This enables to revise upwards the prospects for 2004. "At present," he added "we expect organic growth(1) of 8 to 10% in operating profit." (1) organic growth is on a like-for-like basis For any additional information, visit our website: www.pernod-ricard.com.
APPENDICES
NET SALES AND OPERATING PROFIT BY BUSINESS SEGMENT
Net sales ED excl. Jun-03 Jun-04 2004/2003
------------ ------------ ------------
Wine and spirits
business 1,496 96.1% 1,528 97.1% 32 2.1%
Other business
activities 61 3.9% 45 2.9% (16) -26.0%
------------ ------------ ------------
Total 1,557 100.0% 1,573 100.0% 16 1.0%
Organic Perimeter
Growth Forex Impact Impact
------------ ------------ ------------
Wine and spirits
business 89 6.0% (47) -3.2% (10) -0.7%
Other business
activities (4) -5.9% 0 0.0% (12) -20.0%
------------ ------------ ------------
Total 86 5.5% (47) -3.0% (22) -1.4%
Operating profit Jun-03 Jun-04 2004/2003
------------ ------------ ------------
Wine and spirits
business 279 98.5% 280 99.5% 1 0.4%
Other business
activities 4 1.5% 2 0.5% (3) -64.2%
Total 283 100.0% 282 100.0% (2) -0.6%
Organic Perimeter
Growth Forex Impact Impact
------------ ------------ ------------
Wine and spirits
business 31 11.1% (30) -10.6% (0) -0.1%
Other business
activities (3) -72.8% (0) -0.4% (0) 9.0%
Total 28 9.8% (30) -10.4% 0 0.0%
Operating margin rate Jun-03 Jun-04
------ ------
Wine and spirits
business 18.6% 18.3%
Other business
activities 7.0% 3.4%
Total 18.2% 17.9%
WINE & SPIRITS P&L (M EUR) Jun-03 Jun-04 Variation
------ ------ ---------
Net sales ED excl. 1,496 1,528 2.1%
Gross Margin 985 1,018 3.4%
Distribution costs (67) (67) -0.2%
Marketing expenses (314) (344) 9.6%
Structure costs and Selling
costs (326) (328) 0.7%
------ ------ ---------
Operating Profit 279 280 0.4%
WINE & SPIRITS P&L BY GEOGRAPHIC AREA
France Organic
Jun-03* Jun-04 Growth
------------ ------------ ------------
Net sales ED excl. 268 100.0% 270 100.0% 4 1.6%
Operating profit 46 17.2% 43 15.9% (4) -7.6%
Europe Organic
Jun-03* Jun-04 Growth
------------ ------------ ------------
Net sales ED excl. 578 100.0% 586 100.0% 17 3.0%
Operating profit 112 19.3% 115 19.7% 9 7.6%
Americas Organic
Jun-03* Jun-04 Growth
------------ ------------ ------------
Net sales ED excl. 334 100.0% 325 100.0% 26 7.8%
Operating profit 56 16.8% 55 17.0% 17 30.1%
Rest of world Organic
Jun-03* Jun-04 Growth
------------ ------------ ------------
Net sales ED excl. 316 100.0% 348 100.0% 41 13.1%
Operating profit 65 20.5% 67 19.1% 9 13.9%
2003 figures: costs reallocated among regions to enable a better
comparability.
INCOME STATEMENT
(M EUR) Jun-03 Jun-04 2004/2003
--------- --------- ---------
Net Sales excluding
duties and taxes 1,557 1,573 1.0%
Cost of goods sold (556) (543) -2.3%
Marketing expenses
and distribution
costs (385) (416) 8.1%
Structure costs and
Selling costs (333) (332) -0.3%
--------- --------- ---------
Operating profit 283 282 -0.6%
--------- --------- ---------
Net finance cost (54) (39) -27.6%
--------- --------- ---------
Profit before tax 229 243 5.8%
--------- --------- ---------
Exceptional items 1 0.3 N/A
Corporate taxes (58) (63) 8.4%
Interest from
associates 0 0 N/A
Goodwill
(8) (7) -7.1%
--------- --------- ---------
Net profit before
minority interest 165 173 5.0%
--------- --------- ---------
Minority interest 3 4 19.3%
--------- --------- ---------
Group Net profit 161 169 4.7%
--------- --------- ---------
Net current profit 167 175 4.7%
BALANCE SHEET
(M EUR)
Assets Dec-03 Jun-04 Equity and Liabilities Dec-03 Jun-04
------ ------ ---------------------- ------ ------
Intangible
assets &
Goodwill 2,155 2,200 Shareholders' equity 2,731 2,814
Tangible assets
& investments 994 962 Minority interests' 25 28
equity
Inventories 2,027 2,163 Provisions for 519 464
contingencies
Receivables 1,468 1,188 Deferred tax 118 121
liabilities
Marketable
securities 156 175 Total Financial debt 2458 2432
including Convertible
bond
Cash and
153 120
Prepaid expenses
and deferred
charges 51 63 Trade and other 1183 1041
accounts payable
Bond redemption
premium 40 35 Accrued charges and 10 6
deferred income
------ ------ ---------------------- ------ ------
Total Assets 7,044 6,906 Total Equity and 7,044 6,906
Liabilities
CASH FLOW STATEMENT
(M EUR) Jun-03
Pro Forma Jun-04
--------- ---------
Net profit before minority interests 165 173
Depreciation, amortization and other items 30 47
--------- ---------
Cash flow from operation 195 220
--------- ---------
Increase (decrease) in working capital
requirement 37 11
Acquisitions of tangible fixed assets (net
of disposals) (36) (44)
--------- ---------
Free Cash Flow 197 187
--------- ---------
Acquisitions of financials assets (net
of disposals) 95 18
Impact of changes in consolidation scope 56 (15)
Dividends paid (including withholding Tax) (121) (150)
Foreign exchange impact 80 (33)
--------- ---------
Decrease (increase) in debt net 307 7
--------- ---------
Net financial debt at the beginning of the
year (2,791) (2,109)
Net financial debt at the end of the year (2,484) (2,102)
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