Pernod posts strong first quarter results

20 October, 2011

Pernod Ricard has announced net sales (excluding tax and duties) of €1.987 million for the first quarter of 2011/12 (July 1 – September 30, 2011).

Compared to 2010/11 (€1,879), the company is 6% up. The strong results are said to be down to:

         - Organic growth of 11%, driven by the company’s top 14 (+14%), strong dynamisn in emerging markets (+20%) and good recovery in mature markets (+5%);

        -  A 4% negtive foreign exchange rate, relating to the US dollar and certain emerging countries (Indian rupee, Chinese yuan);

         - A minor 1% negative group structure effect.

The 14 ‘Strategic Spirits and Champagne brands’ (Top 14. 62% of group sales) recorded 6% volume growth and organic sales growth of 14%, which the company says testifies to a continued favourable price/mix effect. Against this backdrop:

·         Eight brands had double-digit organic sales growth: The Glenlivet (+42%), Jameson (+29%), Royal Salute (+29%), Martell (+25%), Chivas Regal (+18%), Malibu (+17%), Perrier-Jouët (+17%) and Mumm (+12%);

·         Absolut (+4%) remained stable in the US but grew 6% in volume outside the US, due to duty free, Brazil, South Korea, Russia and Germany;

·         Chivas Regal (+18%) continued its 'premiumisation', with Chivas 18 Year Old (+36%) and Chivas 25 Year Old (+43%).

¨         The four ‘Priority Premium Wine brands’ (5% of group sales) grew 3% in volume and 8% in value;

¨         The 18 key local spirits brands (16% of group sales) continued to grow in value (+7%), driven by the development of Indian whiskies (+29%), offset by the decline of Wyborowa (-21%), 100 Pipers in Thailand (-32%) and Imperial in South Korea (-16%).


David Williams

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