Pernod Ricard is targeting medium-term growth of 4% to 7%, even at the top of the range on June 8, 2022 at 08:03.

(AOF)-Pernod Ricard is hosting Capital Markets Day 2022 in Paris today. On this occasion, the Group will introduce the implementation of the Conviviality Platform, a new phase of the Transform & Accelerate Strategic Plan covering the 2022/23 fiscal year. 2024. /twenty five. The Conviviality Platform will enable the use of data to optimize the potential of the brand’s portfolio and unique distribution network to amplify Pernod Ricard’s profitable and sustainable growth, the company said this morning. I will explain in the released press release.

This Conviviality Platform has a medium-term ambition of + 4 to + 7% revenue growth, targeting a range cap and a sophisticated pricing strategy with proprietary predictive digital tools.

The group also aims to continuously improve operational efficiency, improve return on investment thanks to new digital tools, and maintain high levels of advertising and promotional expenses, around 16% of sales.

Pernod Ricard aims to follow structural cost discipline, enable it to pursue priority investments while maintaining an agile organization, and keep these costs below sales.

Finally, the world’s second-largest wine and spirits has an annual operating profit of about 50-60bps as soon as sales fall within the range of + 4 to + 7% and financial priorities are confirmed. I expect improvement.

AOF-Details

Key Point

-1805 The second largest wine and spirits in the world after Diageo, born in 1975 by the merger of Pernod and Ricard in 1932.

-Balanced between € 8.8 billion activity, Europe (29% of sales), two Americas (24%), Asia (41%, evenly divided among China, India and other Asia) , Contributed 63% by 12 strategies and 18% by international brands, 15 strategic local brands, 13% by 4 Prestige brands, and the rest by specialty and Prestige wines.

-Headquarters, 6 Brand Companies-Based on a decentralized organization among Absolut, Chivas, Martell-Mumm-Perrier-Jouët, Irish Distillers, Pernod-Ricard, Havana Club, and 5 market companies supporting international and domestic brands. business model.

-Capital is held by the founder’s family at 16.3% (22% of voting rights) and is chaired by 13 board members prior to employees (1.7%), CEO Alexandre Ricard.

-Very sound financial structure. The activity generated cash flow of € 1.4 billion and net debt of € 7.2 billion, meaning a leverage effect of 1.8 from 2021 to mid-2022.

Task

-“Transform & Accelerate” Strategic Plan with 4 Accelerators-Dedicated Positioning for Each Brand, Premium and Luxury Services, Innovation, Digital Accelerator.

-Digital strategy aimed at making the group a “symbiotic platform”: Data collection and analysis / consumer products in the service of offers in each market of “the right product, the right consumer, the right price” Or the BIG (Breakthrough Innovation Group), a kangaroo fund open to collaborators who contribute to “destructive” ideas, responsible for breakthrough innovation that changes the brand’s code and perception.

-Three points of the environmental strategy “S & R Roadmap 2030”: Zero net CO2 emissions, renewable agriculture, partnership with +5,000 farmers, and re-watering to maintain biodiversity in 2030 for clean operation. Through the projects used, all activities / by 2050 for the conservation of terrorism / zero waste to landfills, 100% renewable power at production sites, 100% recyclable or compostable by 2025 Circular economy for various packaging.

-Because the segment is not very dependent on household consumption, it has a solid position in White Spirits, Rum, Anise (No. 1 in the world), Whiskey and Liqueur (No. 2), Cognac, Brandy and Bitters (No. 3). The mature nations we are building are emerging. );

-Strong pricing power that brings profit visibility and margin maintenance.

Task

-Strong seasonality: 2/3 of the activity achieved in the first half (July to December), 1/4 in December, profit sensitivity to sales in Asia and the Americas.

-Russia-Ukraine War: Suspension of exports to the Soviet Union.

-1 Confirmation of significant increase in sales

er

2021-22 Half of the fiscal year.

-Strong sales momentum, 2021/22 goal of improving operating profit

-The dividend and share buyback program from 2021 to 2022 has been strengthened to € 750 million.

Fast-growing fair trade in France

This trade has almost tripled in five years, reaching € 1.83 billion in 2020 in France. Developed by the NGO Max Havelaar in 1988, based on a model that is more profitable for producers in southern countries. The latter will label 90% of the world’s fair trade, totaling $ 10.7 billion in 2019. This trade is 95% food. .. Coffee, chocolate, bananas and sugar cane make up three-quarters of sales. In our territory, NGOs label Gers wheat and Poitou-Charentes milk. The French market is developing through mass distribution, which accounts for 54% of sales in 2020 compared to 42% in 2018. However, while 6.5% of France’s consumption is organic, its fair trade share is limited to 1.5%.

..