PERNOD RICARD - Universal Registration Document 2019-2020
6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements
The Group is focused on a single activity, the production and sale of wines & spirits, and has three operating segments covering three regions, namely America, Europe and Asia/Rest of the World (RoW). Group Management assesses the performance of each operating segment on the basis of net sales and Profit from Recurring Operations, defined as the gross margin after logistics costs, less advertising and promotion investments and structure costs. The operating segments presented are identical to those included in the reporting provided to General Management, in particular for the performance analysis.
Items in the income statement and the balance sheet are allocated on the basis of either the destination of sales or profits. Operating segments follow the same accounting policies as those used for the preparation of the consolidated financial statements. Intra-segment transfers are transacted at market prices.
At 30.06.2019 € million
Asia/Rest of World
Americas
Europe
Total
Income statement items Segment net sales
3,902
5,891
4,224
14,017
o /w intersegment sales
1,357
1,926
1,552
4,835
Net sales (excluding Group)
2,545
3,965
2,672
9,182
Gross margin after logistics expenses
1,698
2,308
1,643
5,648
Contribution after advertising and promotion
1,193
1,716
1,228
4,137
Profit from recurring operations
785
1,179
617
2,581
Other information Current investments
50
72
277
398
Depreciation, amortisation and impairment
29
47
219
295
At 30.06.2020 € million
Asia/Rest of World
Americas
Europe
Total
Income statement items Segment net sales
3,747
5,181
4,032
12,960
o /w intersegment sales
1,298
1,715
1,500
4,512
Net sales (excluding Group)
2,449
3,467
2,532
8,448
Gross margin after logistics expenses
1,599
1,969
1,519
5,086
Contribution after advertising and promotion
1,138
1,452
1,169
3,759
Profit from recurring operations
718
938
605
2,260
Other information Current investments
113
233
611
957
Depreciation, amortisation and impairment
972
133
251
1,356
The segment information includes the impacts of IFRS 16 applicable from 1 July 2019, without restatement of the information presented at 30 June 2019. The implementation of IFRS 16 has no material impact on Profit from Recurring Operations.
The impact of right-of-use assets on current investments and depreciation, amortisation and impairment expense is as follows:
At 30.06.2020 € million
Asia/Rest of World
Americas
Europe
Total
Current investments
71
168
355
594
Depreciation, amortisation and impairment
13
43
57
113
177
Pernod Ricard Universal Registration Document 2019-2020
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