L’efficacité de la stratégie de communication financière avec le IFRS


Regarding the periodical company’s financial reporting, the International Financial Reporting Standards (IFRS) are usually used by business entities in most countries. But it exists some exceptions that limit the effectiveness of financial communication of many global companies in an IFRS world, especially in the wine industry. The most notable exception is the U.S. one where business entities follow U.S. GAAP, which is the generally accepted accounting standards promulgated by the Financial Accounting Standards Board. Beyond IFRS additional measures can benefit the market by giving investors greater insight into companies and how they are managed.

Many global Wine & Spirits companies such as Pernod Ricard choose deliberately to use non-IFRS measures for planning and reporting. They believes that these measures provide valuable additional information for users of the financial statements in understanding the Group’s performance. These non IFRS measures should be considered as complementary to the comparable IFRS measures and reported movements therein.

Organic growth is calculated after excluding the impacts of exchange rate movements and acquisitions and disposals. Exchange rates impact is calculated by translating the current year results at the prior year’s exchange rates. For acquisitions in the current year, the post-acquisition results are excluded from the organic movement calculations.

For acquisitions in the prior year, post acquisition results are included in the prior year but are included in the organic movement calculation from the anniversary of the acquisition date in the current year. Where a business, brand, brand distribution right or agency agreement was disposed of, or terminated, in the prior year, the Group, in the organic movement calculations, excludes the results for that business from the prior year. For disposals or terminations in the current year, the Group excludes the results for that business from the prior year from the date of the disposal or termination.

This measure enables to focus on the performance of the business which is common to both years and which represents those measures that local managers are most directly able to influence.

Pernod Ricard has selected three measures that represent key indicators for the measurement of the recurring performance of the business, excluding significant items that, because of their nature and their unusual occurrence, cannot be considered as inherent to the recurring performance:

Recurring free cash flow calculated by restating free cash flow from non-recurring items

Profit from recurring operations that corresponds to the operating profit excluding other non-current operating income and expenses.

Group share of net profit from recurring operations that corresponds to the Group share of net profit excluding other non-current operating income and expenses, non-recurring financial items and corporate income tax on non-recurring items.

Net debt corresponds to total gross debt (translated at the closing rate), including fair value and net foreign currency assets hedging derivatives (hedging of net investments and similar), less cash and cash equivalents.

EBITDA stands for “earnings before interest, taxes, depreciation and amortization”. It is an accounting measure calculated using the profit from recurring operations excluding depreciation and amortization on operating fixed assets.