Pernod’s results 3% up

21 April, 2016

Pernod Ricard has reported sales for the first nine months of its financial year totalled €6,813 million. 

The world's second largest premium drinks company said it has organic growth of +3%, thanks in particular to a positive US dollar impact.

Regionally, the report says, this was driven by:

-       Strong growth in the Americas (+6% year-to-date) driven by a dynamic US (partly enhanced by shipment phasing);

-       Modest growth in Asia/Rest of the World (+2% YTD) with continued strong growth in India and Africa but a decline in China;

-       Resilient Sales in Europe (+1% YTD), driven mainly by Spain.

Pernod’s Top 14 brands, such as Chivas Regal, Martell and Absolut, grew +1% YTD driven notably by Jameson and innovation, while Key Local Brands, such as Seagrams and Olmeca, (+7% YTD) reported dynamic growth driven by Indian whiskies and Passport. Priority Premium Wines accelerated (+4% YTD) thanks to the UK and Australia.

Sales for the third quarter of FY16 totalled €1,855m, including organic growth of +1% and a negative exchange rate impact (-4%) due to emerging market currency weakness. The third quarter reported growth was -3%. Growth was in part favoured by shipment phasing in the US but negatively impacted by an earlier Chinese New Year, said the company.

Chairman and CEO Alexandre Ricard (pictured) said: “Our sales growth to date at +3% is solid in an environment that remains contrasted. Our strategy has remained consistent and is driving results: innovation is accelerating; operational excellence is driving efficiencies; our ongoing initiatives in the US are starting to deliver; we are working actively to develop the new phase of growth in China, where we remain confident in the medium-term potential despite the tough current context.

“We confirm our FY16 guidance of organic growth in Profit from Recurring Operations between +1% and +3%,” stated Ricard.

Thomas Buckley of Bloomberg News comments: “ Sales in Asia and the company’s rest-of-world division fell 5% while analysts expected 1% growth.

“Pernod Ricard is seeking to offset a slowdown in China, where it has forecast demand for spirits to fall further, as opposed to cognac makers Hennessy and Remy Cointreau, which reported signs of a rebound. The company is reinvigorating sales of its flagship Absolut vodka in the US and Europe through new packaging and releasing a more expensive high-end variant, Elyx. It is also investing in Africa, a continent Ricard has said could become as important as Asia, currently the distiller’s largest region for revenue,” said Buckley

Keywords: pernod ricard




Comment

Christian Davis

Diageo’s Special Releases - released

Diageo’s 2016 Special Releases are being debuted this evening (September 21). Here are my rambling tasting notes with comments from master blender Maureen Robinson interspersed with an occasional discussion about cake/dessert comparisons.

Click for more »

Events

Facebook

Twitter