Leading drinks group Pernod Ricard today revealed a strong set of full-year results for the financial year to 30 June, with net sales climbing +13% (+10% in organic terms) to €12,137 million.
Travel retail sales leapt by +40% year-on-year and contributed to the wider group growth, with profitability ahead of 2019. The company was upbeat on the fiscal year ahead for the channel, saying it should grow ahead of the rest of the business.
Commenting on the travel retail performance in an investors’ call today, Pernod Ricard Chairman & CEO Alexandre Ricard said: “Global travel retail is continuing to normalise, and that will continue into this fiscal year, with a strong recovery in Asia. Passenger numbers globally are about 90% of pre-COVID levels. We have also seen a double-digit price effect and have been helped by a favourable mix as a result of the resumption of travel in Asia, led by China.
“We had a strong travel retail performance in Scotch, along with Martell and Absolut. We have maintained our value leadership and we expect a solid start to the year with continued recovery in Asia.”
Ricard later added: “In terms of profit, GTR is above what we aimed for. We targeted a return to 2019 levels for the year and we ended up above that. That is related to traveller numbers, but also to strong pricing and our mix in terms of brands and in terms of regions.
“Asia was the last [region] to rebound, and that will continue through FY24. We expect a dynamic GTR market for this fiscal year, growing faster than the rest of the world.”
By region across all channels, Americas net sales grew by +2%, with “dynamic growth” in Latin America led by Mexico and low-single digit growth in North America with stable net sales in USA and underlying value depletions up +2%. Declining sales are expected in Q1 in USA, on a high comparison basis, with a positive outlook for the full year 23/24.
Asia/Rest of the World grew +17% in net sales, led by travel retail recovery, India, China and Türkiye. A “challenging macroeconomic environment” in China will mean declining net sales in Q1 FY24, with the high comparison basis expected to ease from Q2.
Net sales rose by +8% in Europe, with led by Spain, Germany and the rebound in travel retail.
All spirits categories delivered strong growth. Strategic International Brands grew by +11%, led by Scotch, Martell, Jameson and Absolut. Strategic Local Brands posted +10% growth, led by Seagram’s Indian whiskies and Olmeca, while Specialty Brands climbed by +8% in net sales, led by Lillet, Aberlour, Malfy and the Spot Range.
Group share of net profit was €2,262 million, up by +13%. In Q4 net sales reached €2,630 million, with +19% organic growth. ✈
