Half Year 2021 Pernod Ricard SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Laurence Bruce Whyatt - Barclays Bank PLC, Research Division - Analyst : Three for me, if that's okay. The first one on India. There are a lot of tax increases that went through over the summer. And we're expecting to see an impact of those on pricing, which I understand, went up by about 15% or 20%. Given you've now got growth in India in Q2? Are you seeing any volume impact from that price increase? Or has it been largely just got unnoticed by the market? The second question, again, on A&P. You mentioned that part of the A&P reduction was due to largely on trade closures. Is it all to do with on-trade closures? Or have there been other efficiencies? And I was wondering if you could quantify how much was down to each one. And then finally, we're at the half year stage and don't have any profit guidance that Pernod often gives at this stage. But what's holding you back from giving guidance, is that largely due to uncertainties around on-trade in COVID or uncertainties around Chinese New Year? Or what are you looking for in particular?

Question: Laurence Bruce Whyatt - Barclays Bank PLC, Research Division - Analyst : Understood. And just as a follow-up on the A&P question. It looks like if we were to get back to the sort of 16% level of A&P throughout the year we would need somewhere in the region of around 18% of sales A&P in the second half, which would be well in excess of anything we've seen post the changes in IFRS. And given you mentioned the on-trade closures and Travel Retail reduction have been an impact. Those are likely to remain in place for much of the first half. Why do you think you are going to get back to that 16% level, which, as I understand, is your long-term expectation for A&P despite the fact that there's going to be so much on-trade closures and Travel Retail impact throughout the second half of this year?