Pernod Ricard reports +2% organic sales growth

27 August, 2015

Pernod Ricard reports +2% organic sales growth for the financial year 2014/15 in an environment that remains “challenging”, it says.

Net sales for the full year 2014/15 totalled €8.558million. Profit from recurring operations was +2% with €2.238m (US$2.5 billion). It claims market share gains in most key markets.

Net profit was down -14% to €880m. Within the group share of net profit, there was a -15% due to impairment charge (writing off worthless good will) on Absolut which, according to Bloomberg News, equates to €404m.

Chairman and CEO Alexandre Ricard said: “Our full year results are solid, delivering improving sales and profit from recurring operations in line with guidance. Our strategy has remained consistent and is delivering results.

"For FY15/16, despite a challenging and volatile macro economic environment, we aim to continue gradually improving our business performance. We will continue to support priority brands and innovations while focusing on operational excellence,” said Ricard.

Regionally it reports:

-       Asia/Rest of the World: +4% return to growth thanks to improving sales in China (-2% vs. -23% in FY13/14) and continued very strong dynamism in India (+18%);

-       Americas: +2% with US stable for full year (improving in H2) and growth in rest of region;

-       Europe: stability with a return to growth in Spain +2% but difficulties in eastern Europe and travel retail.

In terms of categories, growth was driven by whiskies/eys (continued strong performance of Jameson, The Glenlivet, Ballantine’s and Indian whiskies) and also of champagnes Mumm and Perrier-Jouët, both in high single digit growth. Martell returned to growth, despite negative mix (China). Absolut was impacted by a challenging US market but grew outside the US.

The Top 14 returned to growth: +2% (vs. -2% in FY13/14), with a performance improvement driven by Ballantine’s and Martell and continued strong growth of Jameson and The Glenlivet.

Key local brands performed well: +5% driven by Indian whiskies and standard scotch brands, despite the decline of Imperial in Korea.

Priority premium wines were stable with the growth of Campo Viejo offsetting the struggling Jacob’s Creek brand. There were market share gains in most key markets, according to Pernod.

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