Pernod Ricard announces full year results

Nicole Mezzasalma

Print Article E-Mail Article E-Mail Author

Strong duty-free growth helped the liquor company’s sales in the 2007/08 financial year to rise by 2.3% to €6.59bn ($10.3bn)

Liquor supplier Pernod Ricard has announced that sales were up by 2.3% to €6.59bn ($10.3bn) in the 2007/08 financial year. The company said an 8.7% organic growth was offset by a strong foreign exchange impact (-4.6%), mainly due to the depreciation of the US dollar. The premium spirits segment (+14%) and emerging markets (+22%) were singled out as the main growth drivers, while several of Pernod Ricard’s top brands recorded strong sales in the duty-free market, which was described as “developing rapidly”.

The company’s 15 strategic brands registered 11% growth in value sales and a 5% increase in volume sales, with ten reporting double-digit growth: Martell cognac (+24%), Jameson  Irish whisky (+21%), Mumm champagne (+18%), Havana Club rum (+17%), The Glenlivet whisky (+14%), Perrier-Jouët champagne (+14%), Stolichnaya vodka (+12%), Chivas Regal whisky (+11%), Ballantine's scotch whisky (+11%) and Malibu (+10%).

Pernod Ricard also concluded its acquisition of V&S Absolut Spirits on July 23. Absolut vodka had “excellent” performances, registering a sales increase of 12% in the first six months of 2008 and volume sales of 11.3m 9l cases in the twelve months ended June 30 2008—600,000 cases more than in the previous corresponding period. The company said it expected cost synergies of between €125m ($196m) and €150m ($235m) after Absolut is integrated to its portfolio.

Pernod Ricard chairman and CEO Patrick Ricard said: “The year 2007/08 demonstrates our significant growth potential in all emerging markets and the sound basis of our business in Western markets. The quality of our portfolio of brands and the power of our distribution network enable us to start the 2008/09 year with confidence, and to expect very strong growth in emerging markets and moderate growth in Western markets. This development, together with the significant opportunities offered to the group by the V&S acquisition, enables us to anticipate a continuation of improving margins and strong organic growth of our operating profit from ordinary activities for the current fiscal year.”