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Pernod Ricard reports 'good sales' in Q1 but says growth slowing

Published:  25 October, 2012

Pernod Ricard has reported a "good overall performance" for the first quarter of 2012, despite the "less than favourable" economy and "softness" in western Europe.

Its statement, released today, showed reported growth of 11%, and organic growth of 5% for the first three months of the year, with double digit growth in emerging markets and solid growth in North America.

Pierre Pringuet, the company's chief executive, said: "In a less favourable macro-economic environment we realised a good overall performance in the first quarter. We remain confident in our capacity to continue to grow and are setting a target for organic growth in profit from recurring operations close to +6% for the 2012/13 financial year."

Pernod Ricard's consolidated net sales (excluding taxes and duties) totalled €2.2 million for the first three months of its financial year (from July 1 to September 30, 2012), compared to €1.99 million in the same period of the previous year.

Growth in Asia was more moderate than previously but still strong at 13%, but China (18%) and India (18%) stay the main engines for growth.

The drinks giant described a "marked bipolarisation in Europe", with continued sustained growth in eastern Europe and a challenging start to the year in western Europe (-6%). France has also declined following a duty hike there and the end of destocking.  European sales (excluding France), were stable at €524 million, an organic decline of -1%, while eastern Europe reported sustained growth of 14%.

However, some brands showed remarkable resilience, with Beefeater showing  "outstanding growth", particularly in Spain and the USA. Champagnes also performed well.

The firm plans to keep marketing innovations strong to enhance its ongoing premiumisation strategy. This includes Absolut Tune: "the unexpected and sparkling combination of Absolut vodka and crisp Sauvignon Blanc".

Pernod Ricard has reported a "good overall performance" for the first quarter of 2012, despite the "less than favourable" economy and "softness" in western Europe.

Its statement, released today, showed reported growth of 11%, and organic growth of 5% for the first three months of the year, with double digit growth in emerging markets and solid growth in North America.

Pierre Pringuet, the company's chief executive, said: "In a less favourable macro-economic environment we realised a good overall performance in the first quarter. We remain confident in our capacity to continue to grow and are setting a target for organic growth in profit from recurring operations close to +6% for the 2012/13 financial year."

Pernod Ricard's consolidated net sales (excluding taxes and duties) totalled €2.2 million for the first three months of its financial year (from July 1 to September 30, 2012), compared to €1.99 million in the same period of the previous year.

Growth in Asia was more moderate than previously but still strong at 13%, but China (18%) and India (18%) stay the main engines for growth.

The drinks giant described a "marked bipolarisation in Europe", with continued sustained growth in eastern Europe and a challenging start to the year in western Europe (-6%). France has also declined following a duty hike there and the end of destocking.  European sales (excluding France), were stable at €524 million, an organic decline of -1%, while eastern Europe reported sustained growth of 14%.

However, some brands showed remarkable resilience, with Beefeater showing  "outstanding growth", particularly in Spain and the USA. Champagnes also performed well.

The firm plans to keep marketing innovations strong to enhance its ongoing premiumisation strategy. This includes Absolut Tune: "the unexpected and sparkling combination of Absolut vodka and crisp Sauvignon Blanc".

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