PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Movements in the year

Change in gross values

Change in impairment

Translation adjustments

Other movements 30.06.2020

30.06.2019

€ million

Raw materials

140

33

-

(5)

4

173

Work-in-progress

4,877

295

-

(40)

51

5,183

Goods in inventory

505

94

-

(19)

0

580

Finished products

280

12

-

(7)

11

296

GROSS VALUE

5,802

435

-

(71)

66

6,232

Raw materials

(10)

-

(2)

0

0

(11)

Work-in-progress

(10)

-

(13)

0

-

(23)

Goods in inventory

(13)

-

(3)

1

(1)

(16)

Finished products

(13)

-

(4)

1

1

(15)

IMPAIRMENT

(46)

-

(21) (21)

2

0

(65)

NET INVENTORIES

5,756

435

(69)

66

6,167

At 30 June 2020, ageing inventories intended mainly for use in whisky and cognac production accounted for 79% of work-in-progress. The Group is not significantly dependent on its suppliers.

Trade receivables and other operating receivables Note 4.5

Trade receivables and other current receivables are recognised initially at their fair value, which usually corresponds to their nominal value. Provisions for impairment are recognised in line with the losses expected over the life of the receivable.

The following tables break down trade receivables and other operating receivables as of 30 June 2019 and 30 June 2020 by due date:

Due in respect of the following terms

Net carrying amount

31 to 90 days

91 to 180 days

181 to 360

Not due

< 30 days

days > 360 days

€ million

Net carrying amounts Trade receivables and other operating receivables as of 30.06.2019

1,226

985

122

47

23

14

36

o /w impairment

( 67)

( 13)

( 1)

( 4)

( 2)

( 2)

( 43)

Trade receivables and other operating receivables as of 30.06.2020

906

675

62

79

52

24

14

o /w impairment

( 91)

( 15)

0

( 3)

( 8)

( 11)

( 55)

Changes in the impairment of trade receivables and other operating receivables were as follows:

FY19

FY20

€ million

At 1 July

60

67

Allowances during the year

12

37

Reversals during the year

(3)

3

Used during the year

(2)

4

Foreign currency gains and losses

0

(5)

At 30 June

67

105

At 30 June 2020, there was no reason to question the creditworthiness of non-impaired past due receivables. More specifically, non-impaired receivables with due dates of over 12 months show no additional credit-related risk. There is no significant concentration of risks. The change in impairment of trade and other operating receivables during FY20 is notably linked to a reassessment of the recoverability of receivables in the context of the Covid-19 pandemic.

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Pernod Ricard Universal Registration Document 2019-2020