Pernod Ricard Responds to Elliott Management’s Communication
12 Décembre 2018 - 4:11PM
Business Wire
Regulatory News:
Pernod Ricard (Paris:RI) notes the public statement from the
activist fund Elliott. Shareholder engagement is a priority for the
Company and Pernod Ricard values constructive input from its
shareholders, towards the shared goal of enhancing long-term value
creation. While it is the Company’s policy not to comment on
interactions with specific shareholders, it is important to note
that members of Pernod Ricard’s senior management team have held
discussions with Elliott over the past few weeks. The Pernod Ricard
Board of Directors and management team are committed to acting in
the best interests of the Company and its shareholders and will
continue to take action to achieve this important objective.
As the world’s second-largest wine and spirits company, with the
best positioned portfolio in the industry and strong innovation
capabilities, Pernod Ricard is well placed to continue to execute
on its strategic roadmap and fulfill consumers’ aspirations. We
have established a foundation built on operational excellence,
talent management, sustainability and responsibility, and route to
market / consumer. These are essential to our company and we are
determined to continue to transform and accelerate to set the pace
within a changing industry and consumer landscape. Consequently,
over the past three years, the Pernod Ricard Board of Directors and
management team have executed a new strategic consumer-centric
model aimed at transforming each consumption moment into a true
convivial experience. As part of this strategic model, the Company
has focused on areas that will leverage the fundamentals that
underpin its success: a complete portfolio of Premium brands,
premiumisation and luxury, innovation and digital acceleration.
These actions are yielding results:
- Sales and profits from recurring
operations increased 6% and 6.3% respectively in 2017/18 compared
to 3.6% and 3.3% during the prior year, which is already above the
mid-term guidance of 4 to 5% top line growth shared with our
investors in 2015
- This growth is diversified and spread
across all regions and categories. Importantly, innovation
represents a third of this growth. We have also become the leader
in Ultra-Premium and Prestige segments, with our luxury portfolio
growing 10% over the past year
- Our operational excellence initiatives
(€200m savings in P&L and €200m savings in cash) are also
delivering ahead of plan, with nearly 2/3 of cost savings already
achieved and 50% reinvested into the business
- We have also achieved a record level of
free cash flow of €1.4bn (+77% increase since 2014/15) and
significantly reduced debt down to 2.6x Net Debt / EBITDA
- The acceleration of our top line growth
was confirmed during our Q1 communication
At our recent shareholders’ meeting, we confirmed our guidance
for 2018/19 of 5 to 7% organic growth on profit from recurring
operations. We also announced our new strategic plan “Transform and
Accelerate” the objective of which is to solidify the acceleration
of our growth while pursuing our transformation. Pernod Ricard will
further communicate on February 7th, 2019 during the H1 2019
results announcement on its financial performance.
Pernod Ricard’s Board is composed of 14 highly qualified and
diverse directors who bring together a wide variety of consumer
brand management, marketing, operational and finance expertise, as
well as public company board and senior executive experience.
Moreover, the Company has demonstrated a commitment to Board
refreshment, having added three directors over the last three years
and most recently Patricia Barbizet. Patricia will bring her
expertise in terms of governance, management, retail and luxury.
The Board regularly evaluates its composition to ensure the
appropriate skills and experience necessary to drive growth for all
Pernod Ricard shareholders and will continue to do so.
Alexandre Ricard stated: “We are a Group with strong family
values committed to long-term value creation. Over the past three
years, we have created more than €11bn of value and our share price
has increased by +37.7%, significantly outperforming the CAC40
index (+5.6%) and the Eurostoxx Food & Beverage index (-13.4%).
That being said, long-term value creation is not measured by share
price performance alone but by taking into account the interests of
all stakeholders: our shareholders, our 19,000 employees, our
consumers, our partners and suppliers. Our strategy is working and
is the right one combining short-term profitability and
sustainable, profitable and responsible growth under a consistent
and long-term roadmap.”
About Pernod Ricard
Pernod Ricard is the world’s n°2 in wines and spirits with
consolidated Sales of €8,987 million in FY18. Created in 1975 by
the merger of Ricard and Pernod, the Group has undergone sustained
development, based on both organic growth and acquisitions: Seagram
(2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod
Ricard holds one of the most prestigious brand portfolios in the
sector: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal,
Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish
whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu
liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek,
Brancott Estate, Campo Viejo and Kenwood wines. Pernod Ricard
employs a workforce of approximately 18,900 people and operates
through a decentralised organisation, with 6 “Brand Companies” and
86 “Market Companies” established in each key market. Pernod Ricard
is strongly committed to a sustainable development policy and
encourages responsible consumption. Pernod Ricard’s strategy and
ambition are based on 3 key values that guide its expansion:
entrepreneurial spirit, mutual trust and a strong sense of
ethics.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code:
FR0000120693) and is part of the CAC 40 index.
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Pernod RicardJulia Massies, +33 1 41 00 42 02VP, Financial
Communication & Investor Relations
Adam Ramjean, +33 1 41 00 41 59Investor Relations Manager
Olivier Cavil, +33 1 41 00 40 96Group Communications
Director
Fabien Darrigues, +33 1 41 00 44 86External Communications
Director
Emmanuel Vouin, +33 1 41 00 44 04Press Relations Manager
Pernod Ricard (EU:RI)
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