Pernod posts best growth since before recession

30 August, 2012

Pernod Ricard has achieved its highest-level of growth since before the global recession, thanks to strong sales in Asia and a rallying performance in mature markets. †

Sales for the year ending June 30 2012 totalled Ä8.6 billion (excluding tax and duties), due to growth of 7% and organic growth of 8%, the groupís highest since 2007/2008.

Pernod attributed its expansion to strong growth in emerging markets (17%) and a steady 12 months in mature markets (2%), which grew for the second consecutive year.

Profit from recurring operations stood at Ä2.1 billion, a rise of 9% year on year.

Split down by region, the Americas reported growth of 6%, with the US' 5% increase driven by Jameson.

Brazilís sales grew 13%, driven by Pernodís Top 14 brands (+26%). Absolut vodka and scotch whiskies were particularly strong performers.

Due to the reorganisation of the subsidiary, the group said, Mexico posted a decline of -12%.

Europe, excluding France, recorded sales growth of 2%. In Eastern Europe, sales increased 16% but western Europe declined by 1%, largely due to Spain (-4%), Italy (-13%), Greece (-13%) and the UK (-4%).

In the groupís home market of France, sales shrunk by 1% due to a decrease in spirits consumption following the excise duty hike of 1 January 2012 (+14% on average), which, said the group, ďhad a particularly adverse effect on the aniseed categoryĒ.

Pernodís Top 14 brandsí volumes grew 3% collectively; growth brands included: Royal Salute (+20%), Jameson (+15%), The Glenlivet (+15%), Martell (+10%), Perrier-JouŽt†(+10%), Martell (+10%), Chivas (+7%), Malibu (+6%) and Mumm (+4%).

While those that recorded volume decreases were: Ricard (-3%), Havana Club (-2%), Kahlua (-1%) and Ballantineís (-1%).

In value terms Martell grew 25%, Royal Salute (+23%), The Glenlivet (+19%), Jameson (+18%), Perrier JouŽt (+14%) and Chivas (+11%).

Ricard declined -3% by value while Havana Club and Ballantineís net sales were static.

Pierre Pringuet, chief executive officer of Pernod Ricard, said:†"Throughout the 2011/12 financial year, the Group recognised its best growth rates since the 2008 crisis, be it for the top or bottom line. This is the result of a clear and constant strategy: substantial investments in our brands, innovation, premiumisation and geographic expansion.

ďThis performance also derives from a unique, decentralised organisation founded upon the motivation and the accountability of men and women, that Patrick Ricard bestowed upon us.

"Despite the economic uncertainty, we are confident in the Group's ability to deliver solid growth this year as well."


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