Pernod Ricard: 1st-Half 2002 Results; Twofold Increase in Operating Profit From Spirits and Wine; Faster Than Expected Debt Paydown.Business Editors and Food/Beverage Writers PARIS--(BUSINESS WIRE)--Oct. 2, 2002 The board of directors of 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. , meeting on 1 October under the chairmanship of Patrick Ricard, closed the first-half 2002 accounts. Pernod Ricard's consolidated sales, excluding duties and tax, amounted to 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. 2.6 billion, up 18% from first-half 2001. Group 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. rose 63% to EUR296 million, while consolidated net profit was up 47%, at EUR154 million. In the light of these results, the board maintained its full-year projections. Strong growth for Spirits and Wine The Spirits and Wine division had first-half consolidated sales, excluding duties and tax, of EUR1.5 billion, up 78% from first-half 2001. The division's operating profit jumped 110% to EUR265 million and the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: widened to 17.6%, compared with 15% at 30 June 2001. Gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. organic growth for historical brands (+4.5%) Sales of Pernod Ricard's historical brands continued to grow at a fast pace, with rises of 15% for Jacob's Creek This is an article about a creek. For the wine see Jacob's Creek (wine). Jacob's Creek is a small creek that runs through the wine-producing region of the Barossa Valley, 80km north of Adelaide, South Australia. , 11% for Havana Club This article is about a rum made in Cuba. For the rum of the same name made by Bacardi in Puerto Rico and sold in the United States only, see Havana Club (Bacardi). Havana Club is a brand of rum, made in Santa Cruz del Norte, Cuba. , 10% for Amaro Ramazzotti, and 5% for Jameson. Note that sales of Amaro Ramazzotti during the last 12 months topped 1 million cases, giving Pernod Ricard its 15th million-selling brand. Slowing consumption in France, largely due to the gloomy weather in the spring, nevertheless undermined brand performance in Pernod Ricard's home market (aniseeds, Clan Campbell Clan Campbell is historically one of the largest and most powerful Highland Scottish clans. History Origins of the clan The origins of Clan Campbell are uncertain. ). Even so, sales still totalled a very satisfactory EUR898 million at 30 June. This represents organic growth of 4.5%, an improvement from their first-quarter gain of 3.1%. Successful take-over of Seagram brands Half-year sales of Seagram brands amounted to EUR605 million (EUR250 million at the end of March 2002). This performance is in line with the Group's projections. Overstocking in the market put a damper on first-half sales, but Chivas, Martell and Seagram's Gins moved back into double-digit territory during July and August. These results confirm the strong growth potential of these brands. In addition to unlocking synergies between the historical brands and Seagram brands, the acquisition has restored an even geographical balance in sales and profits, to the benefit of the Americas and Rest of the World (in particular Asia). During the first half, the operating profit of the Spirits and Wine division outside Europe increased nearly eightfold eightfold Adjective 1. having eight times as many or as much 2. composed of eight parts Adverb by eight times as many or as much Adj. 1. . Rapid reduction in debt Pernod Ricard's determined strategy of refocusing on its Spirits and Wine business is coupled with a withdrawal from non-core activities. In less than two years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Group has completed the planned disposal of non-core businesses, thereby generating about EUR1.3 billion. As a result, by June 2002 it was able to fully repay the EUR1-billion bridging loan taken out to finance the Seagram acquisition. After a EUR489 million convertible bond issue* in February 2002, net debt stood at EUR2.7 billion on 30 June (versus EUR3.7 billion on 31.12.01), giving a debt-to-equity ratio debt-to-equity ratio The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. of 1.17 (versus 1.47 on 31.12.01). 2002 outlook maintained Despite the slight slowdown in some markets since June, the Group is maintaining its targets. This means for the Spirits and Wine division in 2002: - Sales growth of some 90% relative to 2001 - A twofold increase in operating profit These results should deliver earnings per share of EUR6.40, excluding exceptional items and amortisation of goodwill, diluted for convertible bonds. Commenting on the first-half results, Pernod Ricard Chairman Patrick Ricard said: "The integration of the Seagram brands has already proved successful and is consistent with our ambitious objectives for the development of the Group and growth in shareholder value," * Convertible bonds redeemable in new or existing shares (OCEANEs) To learn more about Pernod Ricard, visit our Web site: www.pernod-ricard.com |
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