HomePress|News & Press Releases|Press releases|Sales for 9 months to 31 March 2008: € 5,091 million


Pernod Ricard provides journalists with all information needed to fully understand the Group and its strategy, along with resources and news about the Group and its brands.

Sales for 9 months to 31 March 2008: € 5,091 million


Highly dynamic sales (+9.3% nine month cumulative organic growth) Continuing strong growth in the 3rd quarter: (+7.1% organic growth) Confirmed profit growth guidance for the 2007/08 financial year

Sales for 9 months to 31 March 2008: € 5,091 million
Pernod Ricard consolidated net sales (excluding duties and taxes) for the first nine months of its 2007/08 financial year (1 July 2007 to 31 March 2008) increased by 3.9% to € 5,091 million, compared to € 4,898 million in the previous financial year.  This growth resulted from the following:

   • a very strong 9.3% organic growth,
  • a 1.6% negative group structure impact, due to disposals (Rich &
     Rare Canadian whisky and Lawrenceburg distillery) and the end of
     co-packing for Fortune Brands,
   • a 3.6% negative foreign exchange impact. The sharp fall in the US
     Dollar, the Korean Won, the Pound Sterling and the Chinese Yuan
     compared to the Euro during the third quarter of 2007/08 will
     increase the overall currency effect for the year. The negative
     currency impact at current exchange rates should be between € -100
     and € -110 million on the full year operating profit from ordinary

Group portfolio premiumisation continued; the 15 strategic brands grew twice as fast in value(1) as in volume (+12% versus +6%), due to price increases and an improved mix.
Emerging markets(2) (+22%(1)) as well as premium spirits(3) (+14%(1)) remained the leading growth drivers.  Organic growth by spirits and wines were 9.8% and 6.6%, respectively.

In the 3rd quarter 2007/08, consolidated net sales were down 1.0% to € 1,378 million, including organic growth of 7.1% (with negative foreign exchange and group structure impacts of 6.2% and 1.7%, respectively).
Organic growth of the quarter was due to:

   • the continuing expansion of emerging markets, which now account
     for close to 30% of Group sales,
   • continuing growth in the US, against the background of an
     increasingly difficult environment, due to the dynamism of premium
   • good performance by other markets, notably Western Europe.


All geographic regions reported strong growth:

Asia/Rest of World: € 1,593 million (+8.7%, with organic growth at +13%)
Martell, Ballantine’s and Chivas Regal generated nearly 2/3 of Asia/Rest of World growth. China and India accounted for 2/3 of growth in the region and remained the first and second contributor to the Group’s organic growth, respectively.
   • China (sales: +26%(1)): the whisky category achieved slight growth. The cognac category remained highly dynamic in spite of the strong  price increases,
   • India (sales: +41%(1)): local whisky brands continued their strong growth, whereas the imported brands had outstanding growth,
 • Malaysia, Indonesia, Vietnam, Singapore and Taiwan grew strongly,
   • Thailand experienced a sharp recovery in the 3rd quarter with 100  Pipers.

• Americas: € 1,280 million (-3.8%, with organic growth at +8%)

   • North America:  In North America (US, Canada, Mexico), organic growth reached
   - US: Jameson, The Glenlivet, Wild Turkey, Malibu, Perrier Jouët, Mumm Napa continued their vigorous growth in a more difficult environment for certain brands (Kahlua, Chivas Regal, Beefeater),
   - Canada and Mexico: international brands, in particular the 15 strategic brands, achieved a good performance, whereas Mexican brandies Presidente and Don Pedro were down.
   • Central and South America
Organic growth was outstanding in Central and South America at +24%. Chivas Regal, Havana Club, Ballantine’s and Something Special reported strong growth.

• Europe (excluding France): € 1,695 million (+5.4%, with organic growth at +8%)
The Europe region continued to report strong growth since the start of the financial year.

   • Central and Eastern Europe
Central and Eastern Europe generated more than 60% of Europe’s growth, thereby increasing its relative size in the region. Russia was the third contributing country to Group organic growth. The other main contributing countries to such outstanding growth were Poland, Ukraine and Romania.

   • Western Europe
Western Europe recorded solid growth. Spain (Ballantine’s, Chivas Regal), the UK (Jacob’s Creek, Malibu), Ireland (Jameson) and Greece (Havana Club) achieved satisfactory growth, whereas Germany and Italy were in decline.

• France: € 524 million (+6%)
France continued its sustained growth. Whiskies (Chivas Regal, Ballantine’s, Jameson, Aberlour, The Glenlivet, Clan Campbell) and the Mumm champagne drove this growth.  Ricard was stable in a market in slight decline.


Conclusion and outlook

Patrick Ricard, Chairman and CEO of Pernod Ricard, commented: “The dynamism noted in the third quarter of 2007/08 is in line with our expectations and again reflects the quality of our brands portfolio and the strength of our distribution network. Sales for the first nine months of the 2007/08 financial year enable us to confirm our 2007/08 full-year guidance for growth in operating profit from ordinary activities, on a like-for-like basis(4)   of at least +12%”.

(1) Organic growth
(2) GNP/Capita < USD 10,000
(3) Brands >= Chivas 12 year old or Martell VS
(4) Exchange and Group structure


Download the appendices (pdf)

Return to the news