FDBusiness.com

Pernod Ricard has announced a series of changes to its Executive Committee, including the creation of a new leadership role for Global Business Development and changes in leadership at Chivas Brothers, the group’s Scotch whisky and premium gin business, and Irish Distillers, the Irish whiskey producer. Most of the new appointments are due to come into effect on 1 July 2018.

Christian Porta, currently Chairman and Chief Executive Officer of Pernod Ricard EMEA & LATAM, is appointed to the newly created position of Managing Director, Global Business Development (GBD). He will report to Alexandre Ricard, Chairman and Chief Executive Officer of Pernod Ricard.

Christian Porta.

In charge of all Brand Companies and the GBD team, Christian Porta will be responsible for: coordinating strategies and initiatives related to the group’s brand portfolio, including innovation and digital; and adapting ways of working and reinforcing the expertise of the sales and marketing teams to become a truly ‘consumer-centric’ organisation.

Gilles Bogaert, currently Managing Director in charge of Finance, IT and Operations, becomes Chairman and Chief Executive Officer of Pernod Ricard EMEA & LATAM. He will report to Alexandre Ricard.

Hélène de Tissot, currently Group Strategy and M&A Director, becomes Group Finance, IT and Operations Director. She will report to Alexandre Ricard. Her replacement will be announced at a later date.

Jean-Christophe Coutures, currently Chairman and Chief Executive Officer of Irish Distillers, becomes Chairman and Chief Executive Officer of Chivas Brothers. He will report to Christian Porta. He replaces Laurent Lacassagne who will leave Pernod Ricard, have made a significant contribution to the development of the group over the past thirty years.

Conor McQuaid, currently EVP Global Business Development, becomes Chairman and Chief Executive Officer of Irish Distillers. He will report to Christian Porta.

Jean-Christophe Coutures.

Lastly, Pernod Ricard has appointed Philippe Coutin, currently Chief Executive Officer of Pernod Ricard Rouss and Pernod Ricard Eastern Europe, as Chairman and Chief Executive Officer of the Ricard and Pernod Companies effective as of May 2019. The replacement of Philippe Coutin will be announced at a later date.

First Half Performance

In the first of its 2018 financial year, Pernod Ricard generated sales of €5.08 billion, with organic growth of 5.1% and reported growth of 0.4%, due to negative foreign exchange factors. All categories performed strongly, each growing by 5%. Strategic International Brands continued their strong growth, driven in particular by Martell cognac and Jameson Irish whiskey. Strategic Local Brands accelerated thanks to Seagram’s Indian whiskies, Olmeca/Altos and improving trend on Imperial (Korea). Strategic Wines also grew due to Campo Viejo’s momentum.

Alexandre Ricard.

In terms of geography, the acceleration was driven by Asia, in particular China, India and Travel Retail Asia. The Americas grew by 6%, while Asia-Rest of World region accelerated by 7% against 3% in the first half of 2017. Europe continued is solid performance with growth of 3%.

Pernod Ricard’s profit from recurring operations (PRO) was €1.496 billion in the first half of 2018, with organic growth of 5.7% but a decline of 0.3% reported, due to the weakness of the US$. The organic PRO margin was up by 21bps, helped by operational efficiency initiatives.

Alexandre Ricard comments: “H1 FY18 was a very good semester, with an acceleration vs. FY 17, in particular in China, India and Global Travel Retail. For full-year FY18, we will maintain our focus on digital, innovation and operational excellence (including pricing.) We expect sustained and diversified growth to continue across our regions and brands. We are therefore increasing our guidance for full-year FY18 organic growth in Profit from Recurring Operations to between +4% and +6%1.”