Pernod profits slip as Ricard takes charge
Pernod Ricard has reported a net profit drop of 5% in the first half of 2014/15, as the company announces its financial results and the appointment of Alexandre Ricard to chairman and CEO.
Ricard takes the helm at the company after being groomed for the role by his predecessor, Pierre Pringuet, revealing to db in an exclusive interview that he plans to make Pernod Ricard the number one drinks producer in the world.
However, the company is struggling with sales in some of its largest markets in 2014/15, as the Chinese clampdown on extravagant gift-giving still effects Cognac and Scotch volumes.
Absolut vodka’s performance in the “challenging” US market was also disappointing, according to a statement released by the company.
Priority Premium Wines suffered a 2% sales decline, but local brands sold well, especially Pernod’s Indian whiskies which helped to account for an 11% rise in the Key Local Brands sector.
In his first public statement since taking the helm at Pernod Ricard, Alexandre Ricard said, “Our H1 results are solid and in line with the guidance given in October. Our Sales are gradually improving despite an environment that remains challenging.
“Heartened by this encouraging first semester, we confirm our full year guidance of growth in Profit from Recurring Operations between +1% and +3%.
“I am confident in the strength of our portfolio of premium brands and of our global network that support our three strategic growth pillars: premiumisation, expansion and innovation.”