Pernod Ricard recorded a -13% fall in travel retail sales year-on-year in the nine months to 31 March, with recent performance hit by the worldwide COVID-19 restrictions and the collapse in air traffic.
The company said that the channel has experienced a “severe decline from February,” but noted solid underlying sell-out of its brands in travel retail pre-crisis.
Total group sales for the period were €7,210 million, -2.1% year-on-year in organic terms, while sales for the third quarter of the financial year alone reached €1,736 million, down by -14.5% as the crisis impact hit.
In its results statement, the company said: “The business is showing good resilience through the crisis. The health and safety of our employees and business partners remains the priority. We have extended help across our communities through donations of hand sanitiser (or the pure alcohol required for their production), health equipment and support to our suppliers and customers.
“A comprehensive cost mitigation programme has been implemented, together with active management of our cash position. We have adapted our manufacturing and supply chains to ensure they remain broadly operational.’’
Over the nine-month period measured, strategic international brand sales fell -2%, after a third quarter drop of -20%, largely driven by Martell and Chivas Regal in China and global travel retail. The group also reported continued strong dynamism with Jameson, The Glenlivet, Malibu, Royal Salute and Beefeater.
Chairman and Chief Executive Officer Alexandre Ricard said: “Our business model and strategy are resilient. Under current assumptions of the impact of COVID-19, we are confirming our guidance of an organic decline in profit from recurring operations for full-year FY20 of about -20%. Some of the Pernod Ricard brands continued to show strong dynamism, despite the harsh economic conditions.
“We are staying the strategic course while implementing a comprehensive action plan to mitigate costs and tightly manage cash. Thanks to our solid fundamentals and strong liquidity position, I am confident in Pernod Ricard’s ability to bounce back from today’s challenges to achieve its growth potential.”
