France: Pernod Ricard reports 2% annual sales growth

France: Pernod Ricard reports 2% annual sales growth

Pernod Ricard, the co-leader in the global wine and spirits business, has released its latest annual financial statements showing organic sales for the full year up 2% to €8,588 million ($9,705 million).

"Considering what is still a very challenging environment, the group posted a good business performance", the company said. Reported sales were up 8%, mainly as a result of "very favourable" exchange rates.

Further describing the results as a "gradual improvement" - sales in 2013/14 having remained flat on the previous year - the company pointed to strong growth in Asia Pacific (especially India) and the Americas. Europe saw "stability with a return to growth in Spain", although the company reported "difficulties in Eastern Europe and Travel Retail".

At the category level, growth was driven by whiskies (in particular the "continued strong performance" of Jameson, The Glenlivet, Ballantine's and Indian whiskies) as well as the champagne brands Mumm and Perrier-Jouet, the company said.

However reported group share of net profit for the year was down 15% as the result of an impairment charge in relation to the Absolut brand.

"Our full year results are solid, delivering improving sales and profit from recurring operations in line with guidance", said Pernod Ricard CEO Alexandre Ricard. "Our strategy has remained consistent and is delivering results. For FY15/16, despite a challenging and volatile macroeconomic environment, we aim to continue gradually improving our business performance. We will continue to support priority brands and innovations while focusing on operational excellence".

Source: Pernod Ricard