Despite recording robust sales growth in H1, the second half of the financial year caused global declines with the Americas at -6%, Asia -14% and Europe -6%.
Q4 was the hardest hit period for the company, with -36.2 decline in sales which Pernod blamed on the impact of the pandemic on travel retail and the global on-trade.
Alexandre Ricard, chairman and CEO, said: “The Group has proven very resilient through FY20 and demonstrated its agility and ability to keep its supply chains operational, control costs and manage cash.
“For FY21, Pernod Ricard expects continued uncertainty and volatility, in particular relating to sanitary conditions and their impact on social gatherings, as well as challenging economic conditions.
“We anticipate a prolonged downturn in travel retail but resilience of the off-trade in the US and Europe and sequential improvement in China, India and the On-trade globally.
"We will stay the strategic course and accelerate our digital transformation while maintaining strict discipline, with clear, purpose-based investment decisions. We will harness our agility to adjust fast to capture new opportunities. Thanks to our solid fundamentals, our teams and our brand portfolio, I am confident that Pernod Ricard will emerge from this crisis stronger.”
In H2 Pernod implemented its ‘Covid-19 crisis management’ which involved:
- Priority given to health and safety of employees and business partners
- Sound inventory position at June end, thanks to robust demand management and supply chain continuity
- Active resource management and strong cost mitigation to adjust to Covid-19 context
- Continued roll-out of 2030 Sustainability & Responsibility roadmap, while developing new measures to support stakeholders during crisis
- Implementation of digital transformation and completion of Reconquer project to resume growth in France and reorganisation of Wine business to reignite its performance.
