2009/10 3rd Quarter Sales04/29/2010
Marked upturn in 3rd quarter Increase in 2009/10 full-year guidance
Consolidated sales for the third quarter 2009/10 (excluding tax and duties) registered a marked upturn to € 1,538 million, an increase of 14% compared to the 3rd quarter 2008/09, resulting from 16% organic growth, a 2% positive foreign exchange effect and a 3% negative group structure effect.
This performance was due to:
- significant consumption increase in new economies,
- improved situation in certain key markets: USA, Russia, Duty Free, etc.
- favourable technical effects (destocking in 3rd quarter 2008/09, earlier Easter and later Chinese New Year celebrations).
The 15 strategic brands grew at an even faster rate of 21%* over the quarter.
Over the first nine months of the year (1 July 2009 to 31 March 2010), cumulative consolidated sales totalled € 5,326 million, compared to € 5,557 million the previous year.
This development resulted from:
- renewed organic sales growth, which turned positive by 2%,
- a 3% negative Group structure effect, primarily due to the termination of Stolichnaya distribution and the disposals of Wild Turkey and Tia Maria,
- a 3% negative foreign exchange effect, largely due to the Venezuelan Bolivar and the depreciation of the US Dollar.
The 30 key local brands confirmed their resilience, reporting +3% growth in volume and +4%* in value. This performance was largely due to the vitality of Indian whisky brands Royal Stag (+28%), Blender’s Pride (+19%) and Imperial Blue (+30%), Imperial’s confirmed growth in South Korea and Royal Salute’s recovery in Asia over the third quarter.
- • Asia/Rest of World: € 1,746 million (+10%, being organic growth of +10%)
Very strong growth rates in India (+29%*), China (+15%*) and Vietnam (+75%*), combined with the recovery of Duty Free and markets such as South Korea, turned Asia/Rest of World into the Group’s leading region. Consumption in Thailand remained adversely affected by the tense political situation.
Strategic brands achieved growth in the Pacific region. Local wine brands declined due to the continuing refocusing on premium brands.
• Americas: € 1,369 million (-10%, being organic growth of +3%)
In the US, following a first quarter of growth and a second quarter in decline, the third quarter enjoyed renewed growth as confirmed by Nielsen (+1.3%) and NABCA statistics. The on-trade market is on the way to stabilising and premium brands overperformed the market in the third quarter.
Canada was in slight decline across the range, whereas Mexico sales increased due to Absolut and whiskies.
Central and South America reported significant growth, due in particular to Chivas Regal, Absolut and Something Special.
• Europe (excluding France): € 1,686 million (-12%, being organic growth of -6%)
Western Europe continued to decline overall due to the difficult situation in Spain, the UK and Ireland. Sales grew in Sweden, Greece, Belgium and Portugal.
Central Europe remained difficult but Eastern Europe noted an improvement in the third quarter, notably featuring a rebound by international brands in Russia.
• France : € 525 million (-1%, being organic growth of +1%)
The good performance of the off-trade market and a lesser on-trade decline explained the resilience of the French market.
Group brands gained market shares. Ricard, Absolut, Chivas Regal, Clan Campbell, Jameson and Havana Club posted satisfactory growth, whereas Mumm turned positive according to Nielsen, featuring a positive price/mix effect, but continued to decline on-trade.
Conclusion and outlook
Pierre Pringuet, Chief Executive Officer of Pernod Ricard, was very pleased with this performance and stated: “We are increasing our guidance for our profit from recurring operations for the full 2009/10 financial year: we now target organic growth of around 3%, compared to a range of 1% to 3% previously. We confirm our intention to step up advertising and promotion expenditure on strategic brands and markets.”
* Organic growth calculated over 8 months from August to March for Absolut
Trading statement on the 2009/10 financial year: Thursday 22 July 2010 after market.
About Pernod Ricard
Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of € 8,682 million in 2015/16. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier- Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, Graffigna and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,500 people and operates through a decentralised organisation, with 6 “Brand Companies” and 85 “Market Companies” established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard’s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.
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