Pernod profits up by 13%

Bill Lumley

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Strong sales growth as Pernod Ricard reports net sales up by 9% and increased profitability in all regions

Pernod Ricard has reported increased profitability in all regions in the first half of 2008 with profits from recurring operations up by 13% to €1.5bn ($2.15bn). Full year net sales in 2007/08 increased by 2% to €6.589bn ($9.48bn), comprising organic growth of 9%, a 5% negative foreign exchange effect and a 2% negative group structure effect.

Development in emerging markets rose by 22%, while Pernod reported organic growth of 18% in the Americas and Asia and the rest of world, while also sharply increasing advertising and promotion expenditure at a faster pace than sales in other regions.

The financial year was marked by a rise in operating profitability in all regions, strong growth in Western markets and the acquisition of Vin & Sprit, owner of Absolut vodka.

Group chairman and CEO Patrick Ricard said: “2007/08 proved an outstanding year for Pernod Ricard, with particularly sharp growth in sales and profitability and the successful acquisition of Absolut vodka.

“In spite of a more difficult general environment, the strength of our portfolio and of our global commercial network…should enable us to continue the strong growth of our sales and profits.”