 |
Tribute to Patrick Ricard: “This visionary entrepreneur” |
INTERNATIONAL. Pernod Ricard this morning unveiled its strongest full-year sales and profit growth figures since 2007/08 for the financial year ended 30 June 2012. Travel retail was singled out for an excellent performance in the Asia and Rest of the World division.
The company also revealed its new management leadership team, following the sad and sudden passing of former Chairman and CEO Patrick Ricard earlier this month.
The Board paid tribute to Mr Ricard, commenting: “Throughout his 34 years as head of Pernod Ricard, this visionary entrepreneur was able to capitalise on the legacy of his father, Paul Ricard, to transform the Group into a world leader. “˜You never achieve success on your own, success is always a team effort’, he was fond of saying.”
Danièle Ricard is appointed Chairman of the Board of Directors. Pierre Pringuet is appointed Vice-Chairman of the Board and will continue to act as Chief Executive Officer.
Alexandre Ricard is appointed Deputy Chief Executive Officer and Chief Operating Officer on Pierre Pringuet’s proposal. He was also co-opted as a Director to replace Patrick Ricard.
 |
Alexandre Ricard: Set to become Chairman and Chief Executive Officer at the end of 2015 |
These appointments reflect the Board of Directors’ intention to see Alexandre Ricard succeed Danièle Ricard and Pierre Pringuet in their duties as Chairman and Chief Executive Officer at the end of January 2015, at which time Pierre Pringuet will have reached the statutory age limit for a Chief Executive Officer.
From a travel retail perspective that is good news, as Alexandre Ricard successfully headed Pernod Ricard’s Asian travel retail operations earlier in the decade and is a committed advocate of the channel.
Organic sales growth rose to +8% while growth in organic profit from recurring operations reached +9%, around one percentage point ahead of target. Operating margin rate improved “significantly” (up +75bps).
Pringuet commented: “Throughout the 2011/12 financial year, the Group recognised its best growth rates since the 2008 crisis, be it for the top or bottom line.
“This is the result of a clear and constant strategy: substantial investments in our brands, innovation, premiumisation and geographic expansion. This performance also derives from a unique, decentralised organisation founded upon the motivation and the accountability of men and women that Patrick Ricard bestowed upon us.”
He added: “Despite the economic uncertainty, we are confident in the Group’s ability to deliver solid growth this year as well.”
Sales saw sustained growth driven by emerging markets, with confirmed gains in mature markets, the company reported. Full-year sales totalled € 8,215 million (excluding tax and duties), representing (reported) growth of +7%.
Profit from recurring operations grew +9% on an organic basis to € 2,114 million. This was riven by continued premiumisation, which improved the gross margin; sustained advertising and promotion expenditure, focused on the most profitable brands; targeted organisational reinforcement in buoyant markets such as the BRIC economies; and a favourable foreign exchange impact.
In regional terms, sales were driven by a “buoyant” Asia/Rest of World; continued growth of premium brands in the Americas; and a good overall performance in Europe, particularly Eastern Europe
Asia/Rest of World, with organic growth of +15%, remains the growth driver of the Group, primarily due to China, India, Vietnam, Taiwan and travel retail, Pernod Ricard said. Growth was also very strong in Africa/Middle East.
Americas reported organic sales growth of +6% while Europe, excluding France, recorded a +2% rise “with pronounced bipolarisation between East and West”.
In Eastern Europe, sales growth accelerated to +16% compared to +9% in 2010/11), while sales in Western Europe declined -1%, a similar decrease to the previous year (-2%). The decline was primarily attributable to the troubled economies of Spain (-4%), Italy (-13%), Greece (-13%) and the UK (-4%).
In France, sales declined -1% due to a decrease in spirits consumption following the excise duty hike of 1 January 2012 (+14% on average), which had a particularly adverse effect on the aniseed category.
 |
Click on the above to view the enlarged image (then hover over graphs with your cursor and click for full detail) |
PREMIUM FOCUS PAYS OFF
Premium brands now account for 73% of Group sales, a two-percentage point increase compared to the previous year. The top 14 brands represent 60% of the overall mix.
Top 14 volumes grew +3% to an all-time record of 47.2 million 9-litre cases, as did eight of its constituent brands: Absolut (+3%), Chivas (+7%), Jameson (+15%), Malibu (+6%), Beefeater (+6%), Martell (+10%), The Glenlivet (+15%), and Royal Salute (+20%).
By value, a significant +6% price/mix effect enabled the Top 14 to grow +10%. Six of these brands reported double-digit growth in organic terms: Martell (+25%), Royal Salute (+23%), The Glenlivet (+19%), Jameson (+18%), Perrier Jouët (+14%) and Chivas (+11%).
 |
Click on the above to view the enlarged image (then hover over graphs with your cursor and click for full detail) |
 |
Click on the above to view the enlarged image (then hover over graphs with your cursor and click for full detail) |
