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Pernod Ricard Chairman and CEO Patrick Ricard: “First quarter performance again illustrated the success of our premiumisation strategy and development in emerging countries.” |  |
Alexandre Ricard, who heads the company’s thriving Asia Pacific travel retail operation, pictured at the recent Changi launch of Chivas Regal 25yo |
FRANCE. Drinks giant Pernod Ricard today announced an “excellent start to the year” with +11.6% year-on-year organic sales growth (+6.9% reported) in the first quarter ended 30 September.
Organic growth was driven by the company’s 15 strategic brands (+ 9% in volume and +16% in value), it said, as well as a +30% boom in sales in emerging countries.
Pernod Ricard’s consolidated net sales (excluding duties and taxes) for the 2007/08 1st quarter increased by +6.9% to €1,557 million, compared to €1,457 million in the 2006/07 1st quarter. The organic growth of +11.6% included foreign exchange and group structure impacts of -1.9% and -2.4%, respectively.
The spirits business recorded organic growth of +13.4% with good performances across all geographic regions. The wines business improved by +3.3%.
The development of the group’s “˜luxury’ brands (defined as an equal or superior quality to Chivas Regal 12yo and Martell VS) remained a leading growth driver, with a +23 % year-on-year organic rise in sales.
Collectively the 15 strategic brands reached +9% organic growth by volume and +16% by in value. Nine of them recorded double-digit organic growth rates in value: Martell (+39%), Jameson (+24%), Ballantine’s (+22%), Havana Club (+22%), Chivas Regal (+19%), Mumm (+19%), Malibu (+13%), The Glenlivet (+13%) and Jacob’s Creek (+10%).
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STRENGTH ACROSS REGIONS
All geographic regions contributed to organic growth as follows:
ASIA/REST OF WORLD: € 498 million in sales (+12.4%, organic growth +13%)
Again, China showed great strength, posting net sales organic growth of +30%, in particular due to Martell and Ballantine’s superior qualities, and despite slower growth in the whisky category.
India also recorded very strong growth due to the Indian whisky portfolio, including Royal Stag, Imperial Blue and Blenders Pride, and to the success of imported whisky brands, especially Chivas Regal and Ballantine’s.
Starting from a lower sales level, most other markets (Taiwan, Malaysia, Indonesia, Vietnam) also posted strong double-digit growth. Thailand slowed down its decline.
Asian Duty Free was “dynamic”, the group said, with stand-out performances from Chivas Regal, Ballantine’s and Martell.
South Africa, where Jameson continued to make its breakthrough, registered further strong growth.
The Pacific Region (Australia and New Zealand) declined following strong price increases, which especially affected wine brands.
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AMERICAS: € 393 million (-3.1%, organic growth +11%)
North America posted organic growth of +7.1% with Jameson, Malibu, The Glenlivet and Wild Turkey continuing to expand rapidly in the US. Chivas Regal sales increased slightly, whereas Martell and Mumm declined following price increases. Kahlúa and Beefeater sales decreased again.
The wine and Champagne portfolio (Perrier-Jouët, Mumm Napa, Jacob’s Creek, Montana, Campo Viejo) grew strongly.
Growth remained strong over the quarter in Canada and Mexico.
CENTRAL AND SOUTH AMERICA (organic growth: +34.1%)
Central and South America experienced outstanding growth, primarily due to Chivas Regal (Venezuela), Ballantine’s (Brazil, Chile) and Havana Club (Chile, Cuba).
EUROPE: €508 million (+10.9%, organic growth +12%)
Europe recorded a sharp acceleration, especially for the 15 strategic brands whose sales increased by +16% in organic terms. Sales growth was enhanced by favourable comparison bases.
Sales increased in most European countries. Western European markets experienced the strongest growth overall, whereas Central and Eastern Europe, notably Russia and Poland, developed rapidly.
FRANCE: € 157 million (organic growth +5%)
First quarter sales held up well in France, with dynamic sales by most whisky brands, in particular premium brands (Chivas Regal, Aberlour, The Glenlivet), partly due to strong promotional activities.
Mumm gained market share and benefited from price increases in the previous financial year and a favourable mix effect (vintage and rosé). Aniseed product sales declined, due to bad weather in the summer and in spite of a marked recovery in September.
Pernod Ricard Chairman and CEO Patrick Ricard said: “First quarter performance was excellent and again illustrated the success of our premiumisation strategy and development in emerging countries. These very good results enable the confirmation, in current market conditions and on a like-for-like basis of guidance of strong growth in sales and operating profit from ordinary activities for Pernod Ricard in 2007/08”.
MORE STORIES ON PERNOD RICARD
Jameson launches Rarest Vintage Reserve, the brand’s “most exclusive expression to date” – 18/10/07
Diary of a Launch: Chivas Regal 25 year old goes on a world tour – 04/10/07
Chivas Regal 25 year old brings another ‘Changi First’ for DFS as Asian roll-out begins – 02/10/07
