Third quarter 2012/13 sales

Good resilience of the business
 

In summary

In the first nine months of the 2012/13 financial year Pernod Ricard demonstrated good resilience of the business in a more challenging macroeconomic environment, as had been announced at the beginning of the year, and one which remains contrasted.

The premium portfolio remains the key driver of performance with:

• continued sustained value growth⁽¹⁾ of the strategic brands
• very favourable price/mix (+6%⁽¹⁾) for the Top 14

Growth continues to be driven by emerging markets⁽²⁾ and the United States:

• growth⁽¹⁾ remained strong in emerging markets⁽²⁾ (+10%⁽¹⁾), but slower compared to the prior financial year, particularly in Q3 2012/13. China (+11%⁽¹⁾), India (+17%⁽¹⁾) and Russia (+19%⁽¹⁾) remained the main growth drivers for the first nine months of financial year 2012/13.
• continued solid growth⁽¹⁾ in the United States
• slight improvement in Q3 in Western Europe in a context that remains challenging
• gradual improvement of the business in France, as anticipated. The base of comparison for the nine months at end March remains unfavourable. (French pre-buying remaining at end March 2012: '48 million)

Consolidated net sales reached '6,650 million for the first nine months of the 2012/13 financial year. Reported growth was +5%, equating to +4% organic growth with:

• Top 14 up +6%⁽¹⁾⁽³⁾
• emerging markets⁽²⁾ up +10%⁽¹⁾ and mature markets stable⁽¹⁾⁽³⁾

On this occasion Chief Executive Officer of Pernod Ricard Pierre Pringuet commented: 'Pernod Ricard's business demonstrated good resilience in, as announced at the beginning of the year, a less favourable economic environment. Our growth is still based on the same drivers: our policy of premiumisation and innovation, the strategic brands and strong presence in emerging markets and the United States.' He added: 'Confident in the strength of this model, we confirm our guidance of organic growth in profit from recurring operations of close to +6% for the full financial year 2012/13.'

(1)       Organic sales growth

(2)       List of emerging markets provided in the appendix

(3)       Excluding French pre-buying