Pernod Ricard reports strong organic sales growth

By Lisa Riley

Published: 19 April, 2018

Pernod Ricard has reported a rise in organic Q3 sales boosted by strong performances in China and the US.

The French spirits giant posted a 9.3% hike in like-for-like sales to €1.977 billion in the three month to 31 March 2018 – a sharp increase from the 4.6% growth recorded in Q2.

The growth was above the estimated analyst average of 6.6% - compiled by Inquiry Financial for Reuters, and of Pernod Ricard’s predicted 4% to 6% growth announced in February this year.

"We confirm our guidance for the fiscal year 2018 given to the market on 9 February at the top-end of the range, with organic growth in profit from recurring operations of about 6%," said Alexandre Ricard, chairman and chief executive.

The group’s strategy was “consistent and driving results”, in particular in terms of diversifying the sources of growth, he added.

The owner of Absolut vodka, Martell cognac and Mumm Champagne said that although it was seeing weakness in some European markets, elsewhere in the world it had generated strong growth.

Sales in Asia rose 10% in the quarter reflecting a particular impressive performance in China and India, it said, with 6% growth recorded for the Americas

In Europe overall sales declined a slight 1%, which the company said put down to “continued difficulties in Spain and France together with unfavourable shipment phasing in Russia and adverse basis of comparison in the UK”.

On the back of the Q3 results, Pernod Ricard said it was firming up its profit growth outlook for the full year and would also progressively increase dividend distribution over the next three years, starting with an interim cash dividend of €1.01 per share for the current financial year.

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