Trading update for the 2009/10 financial year (ended 30 June 2010)
The 2009/10 financial year saw an improving economic environment compared to the previous year, especially over the second half of the year. Pernod Ricard continued to benefit from its comprehensive portfolio of premium brands and its powerful global distribution network, which is the leader in emerging markets.
Over the full year 2009/10, organic sales growth reached 2%*, driven by the Top 14. After taking into consideration a negative foreign exchange effect of around 1% (which turned positive over HY2) and a negative group structure effect of 3%, relating mainly to the disposal of the Wild Turkey and Tia Maria brands, 2009/10 sales reported a slight decline of 2%.
The strong sales growth over the second half-year (9%*) was aided by a gradual recovery in consumer spending in mature markets, higher growth momentum in emerging markets and favourable comparatives, in particular in the third quarter (impact of the crisis and destocking by distributors in many countries over the previous financial year).
After the strong technical recovery in the third quarter, the fourth quarter sales trend was in line with our expectations, with organic growth estimated at close to 3%*, driven by the Top 14 (6%*). Asia and Latin America remained very buoyant. The improved trend was confirmed in Eastern Europe, the US and Duty Free markets. Sales continued to decline overall in Western Europe (especially in Spain, in the UK, and more recently in Greece).
For the full 2009/2010 financial year, we target organic growth in profit from recurring operations of between 3%* and 4%* (compared to about 3%* previously), while having increased advertising and promotional expenditure as planned.
Final and detailed 2009/10 financial year sales and results on Thursday, 2 September 2010.
* on a like-for-like basis
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.
Contacts Pernod Ricard
Julia MASSIES / VP, Financial Communication & Investor Relations
Tel: +33 (0)1 41 00 41 07
Adam RAMJEAN / Investor Relations Manager
Tel: +33 (0)1 41 00 42 14
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