Pernod hails ‘solid’ performance

Pernod Ricard has become the latest drinks group to reflect a steadily resurgent Asian market and buoyant US dollar, as it reported 2% organic sales growth at the end of the third quarter.

Pernod Ricard chairman & CEO Alexandre Ricard

With sales for the first nine months of 2014/15 reaching €6,542 million, Pernod Ricard stood by its original prediction for a profit increase of 1-3% this financial year, despite a slow start.

In common with the modest uplift reported last month by rival Rémy Cointreau, Pernod’s most recent results are largely thanks to a 4% sales rise in Asia after a “stable” Chinese New Year. The group’s performance was also boosted by a 3% rise in the Americas, aided by a strong dollar.

Within an overall 2% rise in net sales for Pernod’s “Top 14” priority brands, there was particularly strong growth for The Glenlivet, whose sales rose 14%, as well as Jameson and Mumm, which both enjoyed a 9% uplift.

Meanwhile the group’s “Key Local Brand” saw a 5% sales rise, led by its Indian whisky portfolio, as recent activity points to a step up for Pernod Ricard’s ambitions in the sub-continent.

Commenting on this latest performance, Pernod Ricard chairman & CEO Alexandre Ricard stated: “Our Sales growth to date at +2% is solid and confirms the gradual improvement we had announced in October, in an environment that remains challenging. We confirm our 2014/15 guidance of organic growth in Profit from Recurring Operations between +1% and +3%.”