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Pernod Ricard's third quarter results shows sales improving

Published:  23 April, 2015

Sales are improving at Pernod Ricard according to its third quarter financial results, reporting a 2% increase in organic sales to €6.5b and a 6% rise in reported growth for the first 9 months of the financial year.

Pernod Ricard's performance improved in the third quarter, with organic sales up 2% to €6.5bn and a 6% rise in reported growth for the first 9 months of the financial year.

Alexander Ricard, the chairman and chief executive officer, said sales growth to date was "solid".  

"It confirms the gradual improvement we had announced in October, in an environment that remains challenging," he said.  

A "very favourable" foreign exchange boosted sales this quarter with the strong US dollar having a positive €198m effect on figures. With the weakening of the Euro, prices of European products in real terms fall making the products more attractively priced in foreign markets.

"We are also benefiting from a highly positive forex impact, driven by a stronger USD. Year-to-date reported sales are up +6% and the forex impact on profit from recurring operations is now estimated based on average FX rates for the full FY2014/15 project on 1 April 2015, particularly a EUR/USD rate of 1.19 at €180m for the full FY2014/2015," Ricard said.

The improvement in organic sales was also partially attributed to a stable Chinese New Year for Pernod Ricard which saw sales rise 4% in Asia/Rest of the world.  This was best performing region globally for the company with the Americas showing organic sales up 3% and Europe remaining flat with 0% growth.

China's cognac and whisky market volumes have improved significantly over the previous year.  Cognac which saw volumes fall 22% (FY13/14 July-June) a year ago are currently only down 1% (YTD 14/15 July- Feb).

India's sales were also up 19% year-to-date particularly among Pernod's spirits brands which saw Indian whiskies, Scotch, including Chivas and The Glenlivet brands, and Absolut helping to drive growth.

Africa and the Middle East saw a 12% increase in sales, particularly with Jameson in South Africa seeing 'very strong growth'.