Pernod Ricard optimistic for its fourth quarter despite Q3 sales dip
Pernod Ricard remains confident of “strong” fourth quarter, despite its first three months reflecting a 2.2% dip in like-for-like sales.
The drinks giant revealed that it has seen sales grow by 8%, totalling €9,507m for the first nine months of 2023 and yet the results show sales of €2.391 billion in the three months to 31 March, indicating a 2.2% decline on a like-for-like basis.
Speaking about the results, Pernod Ricard’s chairman and CEO Alexandre Ricard said: “Our very strong €9m performance was broad-based and confirms the strength of our business, with resilient volumes, strong pricing and continued dynamism in all our regions and spirits categories.”
Pernod said it anticipated consumer demand to recover in China and be “further amplified by favourable comparison basis” as well as where it planned further price increases and expected “strong sales” in the fourth quarter for the US “against a low comparison basis, along with additional price increases on some brands”.
Despite myriad challenges for Pernod with Swedish Politicians calling for a boycott following anger after it failed to remove its Absolut vodka brand from Russia, the drinks behemoth had said it remains optimistic about its upcoming full year results forecasting “strong sales” in its upcoming fourth quarter.
Ricard explained: “While the global environment remains volatile and as markets normalise, we are confident in delivering a strong performance for the full year in FY23, with very strong sales expected in our fourth quarter. Our full year guidance for FY23 is for organic growth in profit from recurring operations of c. +10% with some operating margin expansion.”
Pernod Ricard has recently been facing further headwinds in India, where the Delhi government refused to renew its licence to sell alcohol. Amidst these struggles, Ricard has still remained “optimistic” and has continued to identify India as a “must win” market.
In its third quarter results, it revealed that Asia saw “very strong growth led by India, Travel Retail and Turkey offsetting China” with India in particular seeing sales rising by 15%.