Registration Document - Pernod Ricard

5 Analysis
128
PERNOD RICARD SA FINANCIAL STATEMENTS
of results
Analysis of results
Relations between
the Parent Company
and its subsidiaries
The main role of Pernod Ricard SA, the Group’s Parent Company, is to
carry out general interest and coordination activities in the areas of
strategy, financial control of subsidiaries, external growth, marketing,
development, research, human resources and communication. Pernod
Ricard SA’s financial relations with its subsidiaries mainly involve the
billing of royalties for the use of brands owned by Pernod Ricard SA,
rebilling for research activities relating to product innovation and
receipt of dividends.
Highlights of the financial
year
1. Acquisition of Vin&Sprit (“V&S”)
On 23 July 2008, Pernod Ricard acquired 100% of the shares in the
Vin&Sprit g roup (V&S), for €5.3 billion. The acquisition was funded by
means of a syndicated multi-currency loan.
As a result of this acquisition V&S products ceased to be distributed by
Future Brands and Maxxium as from 1 October 2008. Pernod Ricard
exited the Future Brands joint venture at the cost of a $230 million
indemnity fee and Maxxium on payment of €59 million in indemnity
fees and the transfer of €60 million of shares on 30 March 2009.
2. Capital increase
On 14 May 2009, Pernod Ricard SA increased its capital by
€1,036 million (gross before fees). Under the transaction 38,786,220
new shares were subscribed for at a price of €26.70 per share. The
capital increase allowed the company to repay parts of tranche B of
its euro- and dollar-denominated syndicated loan: €330 million and
$910 million, respectively.
PERNOD RICARD
3. Bond issue
On 15 June 2009, Pernod Ricard SA issued €800 million of bonds. The
proceeds allowed it to repay the next tranches of the multi-currency
syndicated loan falling due and to extend the average maturity of the
Group’s debt.
Income statement
and balance sheet
at 30 June 2009
Analysis of the 2008/2009 income
statement
Operating income was €62.6 million compared to €65 million in
2008, a fall of €2.4 million linked to declines in royalties on brands
and media rebillings, partly offset by reversals of some provisions.
Operating expenses amounted to €(116.8) million compared with
€(121.7) million in 2008. The €4.9 million reduction was chiefly
due to a lower media spend (media spending is rebilled) and lower
depreciation, amortisation and provision charges as well as overall
savings on fees and travel costs, despite the rise in banking fees
linked to the bond issue.
An operating loss of €(54.2) million was incurred in the financial year
ending 30 June 2009.
The interest (expense ) income was €267.3 million, compared with
€884.1 million at end June 2008. Dividends received at end June 2009
were lower than last year by €(399) million and the cost of debt was
€(181.2) million higher.
Operating result before tax amounted to €213.1 million.
Exceptional items at 30 June 2009 represented a charge of
€(28.1) million, mainly linked to acquisition fees on the V&S
acquisition .
I REFERENCE DOCUMENT 2008/2009 I