China Food

Pernod Ricard’s new year’s revenue broke 10 billion euros for the first time! CEO said that China’s market trend has improved significantly

Foreign wine giant Pernod Ricard broke the record again!

Snack generation noticed that recently, the world’s second-largest spirits and wine group, which owns many well-known brands such as Martell, Ballantine’s, Chivas, etc., released the results of the 2022 fiscal year (Note: from July 1, 2021 to June 30, 2022). The annual sales reached 10.701 billion euros (now about 73.637 billion yuan), a record high, and reached the fastest growth rate in more than 30 years.

保乐力加2022财年业绩创纪录

The latest financial year 2022 results show that Pernod Ricard’s growth in the Chinese market is 5%. At the performance meeting held after the release of the financial report, Alexandre Ricard, chairman and CEO of Pernod Ricard group, and other senior executives further interpreted the latest performance of China’s business, and responded to analysts’ questions about the impact of the epidemic in China, price increase plans, inventory management, and preparations for the mid autumn peak season.

保乐力加集团董事长兼CEO李家祺(Alexandre Ricard,资料图片)

Next, the snack generation will take you to pay attention to the on-site news.

China grows by 5%

“We are more resilient than many other categories.” Li Jiaqi said at the meeting, “during the economic downturn in the past few years, we have witnessed this resilience in wine and spirits. Compared with before the epidemic in 2019, the value of the global spirits market has increased by 11%, which shows that spirits above the high end have performed well.”

As one of the four “must win” markets delineated by Pernod Ricard, the Chinese market has achieved growth in fiscal year 2022 despite the challenge of the epidemic.

5% growth in China

“The Chinese market grew by 5% over the previous fiscal year, while the three-year CAGR was 9%. As you know, we had a good start in the previous fiscal year, but the fourth fiscal quarter was affected by strict epidemic prevention measures.” Li Jiaqi pointed out at the meeting, “since June, with the relaxation of restrictions, this trend has improved. So far, we have had a good start in China (fiscal year 2023).”

In interpreting the performance of Pernod Ricard’s core brands, Li Jiaqi mentioned that in fiscal year 2022, Martell’s global organic net sales increased by 7% year-on-year, which was a good result on a very high comparison basis (especially in China); At the same time, Martell blue Swift’s growth in the United States is excellent, and its marketing activities are very successful.

He pointed out that from March to may, the growth of the Chinese market was affected by the epidemic restrictions. But from the perspective of the whole fiscal year 2022, according to IWSR data, Martell has strengthened its market position in China, and the brand also adjusted its price in mid May, rising by a single digit. In addition, single malt whisky performed well, and Granville’s sales “almost doubled” on a very strong year-on-year basis. High end spirits absolute vodka and bifida “continue to show a good momentum of development”.

Xiaoshidai noticed that an analyst further asked, “you mentioned that the trading trend has improved significantly since June. Can you provide more information about the current situation of China’s business? In addition, you can talk about the potential in inventory in recent months and the first quarter of fiscal year 2023

In all sales regions, Pernod Ricard’s sales have achieved double-digit growth. Among them, the American market grew by 12%; Asia and other regions increased by 19%, mainly due to the rapid growth of Indian, Türkiye, China and sub Saharan Africa markets, while South Korean and Japanese markets also performed prominently; The European market grew by 19%.

“A very important point is that our four ambition markets are all full of vitality: India’s growth is 26%, tourism retail growth is nearly 50%, the United States’ growth is 8%, and China’s growth is 5%.” Li Jiaqi said.

In fiscal year 2022, the share of Pernod Ricard group in most markets has increased. “We have basically implemented price increases in all markets, with prices rising by an average of about 5% worldwide. The strong recovery of the ready to drink market, the resilience of the non ready to drink market, and the rapid rebound of the tourism retail channel (although the passenger flow in the Chinese market is still low) have boosted sales to a new high.” He said.

The snack agent noticed that although the tourism retail business grew by about 50%, the three-year CAGR was still – 13%. “However, our value leadership in the field of tourism retail has been significantly strengthened. In fiscal year 2023, we expect that the profit of tourism retail will return to the level before the pandemic.” Li Jiaqi mentioned at the meeting.

The profitability of Pernod Ricard is quite bright.

The financial report shows that in fiscal year 2022, the net profit of Pernod Ricard reached 1.996 billion euros, a sharp increase of 53%, mainly due to the profit growth of continuing operations, the decrease of financial expenditure and the favorable impact of foreign exchange.

The company pointed out that the profit from continuing operations reached 3.024 billion euros, achieving an increase of 19% (the reported increase was 25%; due to the appreciation of the US dollar and RMB against the euro, it increased by about 160 million euros), and the operating profit margin organically increased by 52 basis points.

The financial report shows that the gross profit margin increased by 12 basis points, and the price, portfolio effect and fixed cost absorption offset the increase in the cost of main business; Advertising and promotion expenses account for about 16% of sales; The structural cost increased as planned, mainly for recruitment to help digital transformation.

In addition, in fiscal year 2022, the free cash flow from continuing operations reached 1.926 billion euros, a record high. The group has proposed a dividend of 4.12 euros, up 32% from fiscal year 2021.

Let’s look at it by brand.

In its financial report, Pernod Ricard pointed out that in fiscal year 2022, strategic international brands increased by 18%, and all regions achieved strong growth, mainly due to the good performance of Jameson, Chivas, Ballantine’s, absolute vodka and Martell. Strategic local brands grew rapidly by 18%, mainly due to the excellent performance of schland Indian whisky, manna, Omega and schland gin.

Some products of Pernod Ricard

In addition, characteristic brands increased by 24%, mainly due to American whisky, gin and tequila brands; Compared with fiscal year 2019, the sales of featured brands doubled. As for strategic wine brands, it decreased by 4%, and the overall performance was weak, mainly affected by the decline of grape production in New Zealand.

“Since the outbreak of COVID-19, people have gained a new understanding of happy gatherings. I would like to take this opportunity to commend our team for their perseverance in bringing happy gatherings to consumers all over the world. Although the market environment we are in is still full of challenges and changes, I believe that our unique competitive advantages and the rapid implementation of digital transformation will help us achieve our medium-term financial goals from fiscal year 2023 to fiscal year 2025 Bid. ” Li Jiaqi said.

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Pernod Ricard’s new year’s revenue broke 10 billion euros for the first time! CEO said that China’s market trend has improved significantly

另外,2022财年,持续经营业务的自由现金流达到19.26亿欧元,创历史新高。该集团已提议派发4.12欧元股息,比2021财年上涨32%。

分品牌来看下。

保乐力加在财报中指出,2022财年,战略性国际品牌增长18%,所有地区均实现强劲增长,主要得益于尊美醇、芝华士、百龄坛、绝对伏特加和马爹利的不俗表现。战略性本土品牌迅猛增长18%,主要得益于施格兰印度威士忌、甘露、奥美加和施格兰金酒的优异表现。

保乐力加旗下部分产品

另外,特色品牌增长24%,主要得益于美国威士忌、金酒和龙舌兰品牌;和2019财年相比,特色品牌的销售额实现翻番。至于战略性葡萄酒品牌,则下降4%,总体表现疲软,主要受新西兰葡萄产量下降的影响。

李家祺在会上指出,无论是从地区还是品牌、品类来看,保乐力加的增长都有着均衡的、多样化的来源,这一点是至关重要的,“这与10年前相比是一个巨大的变化,也会继续成为我们未来的战略意图。”

增长公式

展望2023财年,保乐力加预计将维持增长势头,并打算扩大资本支出。

“新财年伊始,各地区都保持良好的库存水平,而面临仍充满不确定性的市场环境,在正常的比较基础之上,我们预计2023财年的净销售额将实现强势、广泛增长,第一季度有望迎来开门红。”该公司指出。

保乐力加表示,2023财年,重点关注高通胀环境下的收入增长管理和运营效率;广告及促销费用在净销售额中的占比控制在16%左右,提高投资回报率;将继续加大对企业结构方面的投入,重点支持创享欢聚平台的快速部署;将资本支出增加到净销售额的7%左右,为推动未来的业绩增长进行战略储备

另外,该公司计划回购5亿至7.5亿欧元的股票。保乐力加预计,2023财年仍将面临非常有利的外汇因素。

小食代留意到,会上,李家祺还总结了保乐力加的“增长公式”,或者说“独特的竞争优势”。

他认为,第一是该公司拥有广泛的、庞大的、全面的高档烈酒品牌组合;第二是多元布局的全球足迹和规模,“当环境动荡且区域之间、细分市场之间的周期不一致时,这一点就显得尤为重要”。最后且最重要的是,保乐力加拥有独特的创享欢聚的文化,人们的参与度非常高。

“这个公式还受到非常有利的潜在因素的驱动,包括法定饮酒年龄人口,以及新兴市场中产阶级和富裕阶层的增长,这不仅仅是中国、印度、拉丁美洲这些市场的消费趋势(向好),对全球来说都是如此,高端化是一个既定的长期基本趋势。”他说。

“新冠疫情爆发以来,人们对欢聚有了新的认识,我想借此机会对我们的团队提出表扬,他们坚持不懈,一如既往地为世界各地的消费者带去欢聚体验。尽管我们所处的市场环境仍充满挑战与变化,我相信,我们独特的竞争优势和数字化转型的快速实施,将助力我们达成2023财年至2025财年的中期财务目标。”李家祺说。

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