Sales for 9 months to 31 March 2008: € 5,091 million04/30/2008
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
• 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.
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).
• 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:
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.
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
About Pernod Ricard
Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of € 8,558 million in 2014/15. 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 18,000 people and operates through a decentralised organisation, with 6 “Brand Companies” and 80 “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.
Contacts Pernod Ricard
Julia MASSIES / Financial Communication – Investor Relations VP
Tel: +33 (0)1 41 00 41 71
Sylvie MACHENAUD / Director External Communications
Tel: +33 (0)1 41 00 42 74
Emmanuel VOUIN / Press Relations Manager
Tel: +33 (0)1 41 00 44 04
Apolline CELEYRON / Press Relations Officer
Tel: +33 (0)1 41 00 40 97