Asia, US and E Europe buoy Pernod's H1

14 February, 2013

Pernod Ricard has reported half-year revenue growth of 6%, with good performances in China, India, Eastern Europe and the US offsetting declines in Western Europe.

Sales for H1 2012/213 totalled € 4,907 million (excluding tax and duties), with organic growth of +€116 million, an increase of +3%.

China grew 18%, driven by Martell, which continues to gain market share, said Pernod Ricard.

Scotch whiskies experienced “conjunctural difficulties” in China – “a market down in volumes”. While Absolut and Jacob’s Creek continued their “very strong growth”.

In India, there was “dynamic growth of local whiskies (+18%) bolstered by premiumisation”. Pernod reported strong growth from 100 Pipers and its Top 14 (particularly Chivas, Absolut and The Glenlivet).

The US (+9%) drove growth in the Americas with rises for Jameson (+24%), Malibu (+10%), Beefeater (+16%) Perrier Jouët (+17%) and The Glenlivet (+21%).

The pace of growth was sustained in Eastern Europe (+12%), reported Pernod Ricard, with Russia generating much of the new sales thanks to Jameson, ArArAt, Chivas, Olmeca and Ballantine’s.

Organic growth for Pernod Ricard's Top 14 brands

Organic growth for Pernod Ricard's Top 14 brands

Western Europe (excluding France) declined -4% in what Pernod described as “a challenging economic climate”. Southern European countries were the primary reason for the decline, with Spain the biggest culprit with a decline of -9%.

France saw a decline of -28%, down to unfavourable comparatives with HY1 2012/13, a period that featured significant pre-buying. Excluding this effect, sales declined -11%.

According to the Paris-headquartered drinks group, its portfolio outperformed the French market, which was impacted by the excise duty hike. Ricard was down -3%, Chivas (-10%), Malibu (-14%) but positive news came in the form of Ballantine’s (+4%), Jameson (+5%), Absolut (+10%) and Havana Club (+14%).

Pierre Pringuet, chief executive officer and vice president of the Board of Pernod Ricard, said: “The good performance achieved this semester confirms the soundness of our business model: a comprehensive portfolio of first-class international and local brands, a premiumisation strategy enhanced by a strong innovation policy, and global exposure allowing us to capture all growth relays.

“We are confident in continuing our growth mid-term, and we confirm our guidance of organic growth in profit from recurring operations close to +6% for the full financial year 2012/13.”

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