Pernod Ricard sees ‘dynamic growth’ and expects more in 2023

Pernod Ricard has seen first quarter sales grow by 22%, totalling €3,308 million, and expects “dynamic” sales to continue throughout 2023.

In its Q1 FY23  results, the French drinks giant also saw volumes grow across all three regions and organic growth of 11%, beating its forecasts.

The results, which were “strong” in the US, its top market, thanks to price increases, as well as in China and India and also marked as a continued rebound in global travel retail (GTR). In Europe, it’s “dynamism” had been enhanced by the tourist season supporting the on-trade sector.

Pernod Ricard chairman and CEO Alexandre Ricard said: “I am hugely encouraged by our start to the year. Our performance continues to be broad-based with growth across many markets and diversified across our portfolio with all our spirit segments in double digit growth.”

Ricard explained: “Within a context which remains challenging and volatile, as for every business, we continue to actively invest to support our unique competitive advantages and fuel our future growth. We have been very active in portfolio management in the past quarter with Sovereign Brands, Código 1530 and Nocheluna and are excited to work with our new partners to fully develop the global potential of such highly attractive brands.”

The results showed Pernod Ricard had witnessed double-digit growth across all spirits segments with sales driven by its strategic international brands which enjoyed a 12% growth spike driven mainly by the Scotch category as well as brands including Jameson, Absolut, Beefeater and Martell.

The company’s strategic local brands also saw a 13% lift boosted by strong double-digit growth of Seagram’s whiskies, while specialty brands were up 16% with continued excellent development driven by Lillet, Malfy, Redbreast and Jefferson’s.

Ricard added: “We expect this dynamic growth to continue through FY23, demonstrating the strength of our strategy and the dedication and full engagement of our teams around the world”.

The only area that noted a dip was strategic wines which saw an 8% drop owing to a soft start notably in the US and the UK.