Pernod Ricard sees emerging market growth

Drinks giant Pernod Ricard reported a 5 % increase in third-quarter sales due to growth in sales of Cognac and other liquors in emerging markets.

The third-quarter growth offset a decline in France for the beverage purveyor.

The maker of Beefeater gin and Jameson whisky said the drop in French sales was largely due to an excise duty increase. Still, the group managed to grow overall revenue to €1.7 billion ($2.3 billion) for the January to March period, its fiscal third quarter.

Sales in Asia, Africa and the Middle East continue to grow, rising 15%, while Martell Cognac sale were up 26% in the first nine months of the year.

Revenue in the company’s home market fell 42% after wholesalers mostly sat out the third quarter, having stocked up before the duty increase came into effect in January.

Europe’s economic situation contributed to the drop-off and the company also noted the discounting effects of “destocking” and an early Chinese New Year hurt sales.

This comes on the back of news that Pernod Ricard, in connection with a group of 25 banks, signed a new €2.5 billion 5-year multi-currency revolving credit facility.

The facility will be used for general corporate purposes and for refinancing all outstanding amounts.

Gilles Bogaert, managing director finance, said, “Following our most recent successful euro and US dollar bond issues, this new syndicated credit facility marks the final step in the refinancing of the debt related to the Vin&Sprit acquisition.”