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Profits jump 25% at Pernod Ricard

Published:  08 February, 2018

Pernod Ricard is celebrating rising profits of 25% in the first half of the 2018 fiscal year, with growth driven by stronger demand in China, India and at its travel retail division.

In the six months to December 31, the world number two in wines and spirits behind Diageo saw net profit rise to 1.15 billion euros ($1.4 billion) from 914 million euros a year earlier, beating forecasted earnings and leading the company to announce it is raising its annual profit growth outlook from 3-5% growth for the year to June 30, 2018, to 4-6%.

Pernod Ricard, which has a global portfolio spanning Absolut vodka, Mumm Champagne and Jameson whisky, saw continued strong growth of its international brands, driven in particular by Martell and Jameson with geographical acceleration centring on India and China.

In China, the negative impact of a later Chinese New Year was offset by strong demand for Martell Cognac, resulting in overall sales growth of 8% in the first half.

The company’s wines division meanwhile accelerated due to increased momentum of Rioja favourite, Campo Viejo.

Asia and the Americas accounted for the most robust growth with 7% and 6% respectively, while Europe continued a “good performance” with growth of 3%.

“H1 FY18 was a very good semester, with an acceleration vs. FY 17, in particular in China, India and Global Travel Retail,” said Alexandre Ricard, group chairman and CEO.

“For full-year FY18, we will maintain our focus on digital, innovation and operational excellence (including pricing.) We expect sustained and diversified growth to continue across our regions and brands.”