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Pernod Ricard shows strong sales growth and “even stronger” intentions

10 February 2022 By Jessica Mason

Pernod Ricard shows robust sales growth, despite challenges caused by the pandemic with plans to emerge “even stronger” from the crisis.

The drinks giant revealed that profit from current operations in the six months to 31 December reached €1.998 billion (US$2.28 billion), an organic growth of 22%, ahead of expectations.

In the first half of the year, sales totalled €5.959 billion, with an organic rise of 17% owing largely to favourable foreign currency effects linked mainly to the strength of US Dollar and Chinese Yuan vs. Euro.

Pernod Ricard chairman and CEO Alexandre Ricard said: “The execution of our Transform & Accelerate strategy is delivering an excellent and broad-based performance in the first half, with brand share gains in most countries and with all our must-win markets showing very strong growth. I take the opportunity to praise the engagement and performance of our teams throughout the world, who have relentlessly accomplished outstanding work, in an environment still largely disrupted on many fronts by the Covid crisis.”

Sales grew in all regions with the Americas seeing a lift of 14% due to very dynamic growth in the region, notably USA, Brazil and travel retail.

Asia and ‘the rest-of-the-world’ was up 16% owing to excellent growth driven by China, India and Turkey. Europe saw a 21% lift that was attributed to outstanding growth across the region, with rebound in Spain, France, travel retail and continued dynamism in Eastern Europe.

Pernod Ricard revealed that both its ‘strategic international brands’ and ‘specialty portfolio’ are driving strong price/mix with ‘strategic international brands up 19% thanks to broad-based rebound with all brands growing, notably Jameson, Martell, Ballantine’s, Absolut and Chivas Regal, all being double-digit.

Ricard said: “Despite the ongoing volatile environment, we expect for FY22 strong Sales growth across regions, with continued On-Trade rebound, Off-trade resilience and a gradual travel retail recovery. We will increase investments to fuel growth momentum,” he added: “We remain focused on executing our strategy, progressing on our Sustainability and Responsibility journey and accelerating our digital transformation. A successful mix of robust fundamentals, the dedication of our teams and our portfolio of brands, has yielded a very strong set of results and seen us through this crisis, emerging even stronger.”