Pernod Ricard announces half-year results

Andrew Pentol

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Strong duty-free sales in Europe and Asia contributed to a 5.9% increase in net sales

Pernod Ricard has announced that consolidated sales for the first half of the 2007/08 year (July 1 to December 31) were up by 5.9% to €3.71bn ($5.44bn) compared with the previous corresponding period. The company said “outstanding 10.1% organic growth” led by the 15 strategic brands in its portfolio drove the increase. Duty-free sales registered double-digit growth in the six months to December 2007.

Spirits registered an overall sales growth of 11%, with Chivas Regal enjoying a strong second quarter in Asian duty-free and other duty-free markets across the Americas. Ballantine’s Superior Qualities also sold well in Asian travel-retail, while Jameson recorded a double-digit sales increase in Europe due to a strong second quarter in duty-free. The Glenlivet and Malibu also enjoyed higher sales in various European duty-free markets.

Pernod Ricard chairman and CEO Patrick Ricard said: “I could describe this first half-year as historic, given the outstanding sales dynamism. This reflects the relevance of the Pernod Ricard model, the performance of our premium brands and our very strong geographic presence in emerging markets. These results and the very positive sales outlook for the second half-year enable me to be confident for the full financial year and to revise our growth guidance upwards. We now aim for 2007/08 growth in operating profit on a like-for-like basis of about 12%, compared to around 10% previously.”