Pernod figures point to spirits recovery

Latest figures from Pernod Ricard have hinted at a spirits market recovery after global sales increased for the second month in succession in April.

Chief executive Pierre Pringuet confirmed that sales in April were up on March, which were already up compared to January and February’s figures.

The world’s second-biggest spirits group warned, however, that talk of a sustained recovery was premature with certain key markets, such as Russia and eastern Europe, proving tough. The company is also being hit by retailers in the US cutting stock levels.

In a presentation to analysts yesterday (Tuesday, 26 May), Pernod Ricard said it was continuing to gain market share in many countries and defended its focus on the premium end of the market.

Brokerage Natixis noted: “The group reiterated its confidence that its business model was solid.

“The questions asked by the attendees clearly showed that there is a discrepancy between this long-term message and investors’ doubts about the premiumisation trend and about the resilience of consumer spending in the short-term.”

Despite the recent upturn in global sales, Pringuet told analysts he expects sales for 2009/10 to be flat to down 5% based on current market trends.

Alan Lodge, 27.05.2009