25th April, 2013 by Andy Young
French drinks company Pernod Ricard has reported a 2.4% sales increase in the third quarter of its 2012/13 financial year.
The group also said that in the first nine months of its year, sales totalled €6.65 billion, thanks mainly to strong demand in China, Russia and India.
Sales were also helped by “continued solid growth in the United States” and emerging markets, where “growth remained strong.”
Pierre Pringuet, chief executive of Pernod Ricard, said: “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.”
“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.”
Pernod Ricard’s main growth drivers for the first nine months of the financial year were Russia, where organic sales growth is up 19%, India, up 17% and China, which is up by 11%.
The sales growth in Russia was mainly due to Jameson, ArArAt, Chivas, Olmeca and Ballantine’s. The company also said that the “favourable impact of pre-buying prior to price hikes on 1 April 2013 should be noted.”
The “on-going solid performance of Martell” helped to drive the sales growth in China, and the region was also boosted by “new growth drivers” such as Jacob’s Creek and Absolut.
Pernod Ricard reported that “the situation in Western Europe remains challenging” and while the sales for the first nine months of the financial year are down 3%, the third quarter was actually “stable”. Spain is improving slightly, while renewed growth was reported in Germany, the UK and Ireland.
The company maintained its guidance that it expects “profit from recurring operations close to 6% for the full financial year 2012/13”.