Pernod Ricard (RI) AGM 2024 summary

Opening remarks and agenda

• The meeting was convened in compliance with legal and regulatory requirements, with a provisional quorum of 80.88% established, and legal documents were made available to shareholders.

Financial performance review

• Organic revenue was stable at -1% to +1% (excluding Russia), with recurring operating income up 1.5% and margin up 80 basis points, despite challenging conditions in key markets.

• Free cash flow was €963m, down 13% to 33%, and net debt/EBITDA rose to 3.1x, mainly due to strategic CapEx and lower free cash flow.

• Net profit declined by 35% to €1,476m, impacted by non-recurring expenses, higher financial costs, and wine sector disposal.

• U.S. organic revenue fell 9% due to retailer destocking and inflation, China saw a >10% decline, while India became the second-largest market with strong growth.

• Over five years, average annual growth was 5%, within the medium-term target range of 3–7%.

Board and executive committee updates

• The board comprised a majority of independent directors, with strong diversity in gender and nationality, and will have 14 members post-meeting.

• Board skills cover management, finance, audit, CSR, innovation, and digital, with a 97.95% attendance rate over 10 meetings.

• Five dedicated committees (Audit, Nominations & Governance, Compensation, Strategic, CSR) supported the Board's responsibilities.

• Wolfgang Colberg retired from the board; committee work included audit, governance, compensation, strategy, and CSR.

• Lead Independent Director engaged with main investors and ensured conflict of interest prevention.