Paris, May 4 - For the first nine months of the 2006/07 financial year (1 July 2006 to 31 March 2007), Pernod Ricard recorded consolidated sales (excluding duties and taxes) of Euro 4,898 million, a +7.2% increase compared to the previous period and an excellent +10.3% organic growth (-3.0% unfavourable foreign exchange impact, favourable group structure effect of +0.3%).
- Strong organic growth*: first 9 months: +10.3%
3rd quarter: +12.2%
- Vigorous organic growth* by 15 strategic brands:
+10% in volume
+14% in value
Spirits continued to perform remarkably well with organic growth* of +12.6%, whereas wine brands experienced renewed growth (3rd quarter organic growth of +6.8%). The most dynamic geographic areas remained Asia / Rest of World and Americas, along with enhanced organic growth* in Europe.
The premiumisation of the Group’s portfolio continued. The 15 strategic brands thus registered strong organic growth of +10% in volume and +14% in value. Ballantine’s (+23%), Martell (+21%), Stolichnaya (+20%), Havana Club (+16%), The Glenlivet (+13%) and Jameson (+12%) performed best with volume organic growth. Such high growth rates were even more marked among super and ultra premium spirit brands**, which posted an average growth rate of +32%: Ballantine’s 30 years old (+57%), Martell Cordon Bleu (+43%), Chivas Regal 18 years old (+35%) and Royal Salute (+20%).
Consolidated sales for the 3rd quarter amounted to € 1,391 million, an increase of +6.8%, of which +12.2% organic growth, -4.0% foreign exchange impact and -0.9% group structure effect.
Sales growth in the 3rd quarter was due in particular to the following:
- vigorous Europe sales,
- successful Chinese New Year-related sales,
- recovery of the wine business.
Currency effect
The continuing decline in the US dollar, a certain number of Asian currencies and the Mexican peso versus euro had an adverse affect of sales for the first nine months of the 2006/2007 financial year of € 139 million. This currency effect will also adversely affect the growth in full-year operating profit from ordinary activities by some € 80 million, if the exchange rates remain at their current level.
All geographic regions contributed to growth
• Asia/ Rest of World: € 1,465 million (+12.1%, that is +14.1% organic growth*)
The Asia / Rest of World region experienced faster growth, further enhanced by the success of the Chinese New Year.
• China: Martell, Chivas Regal and Ballantine’s experienced strong growth.
• India: outstanding growth by Royal Stag (+42%) and Imperial Blue (+26%) whiskies.
• Thailand: decline of the 100 Pipers scotch whisky brand (-17%) in a difficult market.
• Australia and New Zealand: faster growth thanks to Montana and Jacob’s Creek wines, as well as spirits.
• Americas: € 1,331 million (+5.5%, that is organic growth* of +11.1%**)
• North America (organic growth*: +8.2%**)
- The US recorded good performances by spirit brands (Jameson, The Glenlivet, Stolichnaya, Malibu, Seagram Gin, Wild Turkey) as well as wines (Jacob’s Creek, Campo Viejo, Mumm Napa).
- Mexico posted double-digit growth thanks to the expansion of international brands (Martell, Havana Club, Chivas Regal) as well as local brands (Presidente, Don Pedro).
• Central and South America (organic growth*: +24.6%)
Central and South America recorded very strong growth. Chivas Regal and Havana Club were the main growth drivers. Local brands Montilla (Brazil) and Something Special (Venezuela) experienced strong growth.
• Europe: € 1,608 million (+5.8%, that is organic growth* of +8.7%**)
Recovery by Western Europe markets: UK, Italy, Germany, was added to the vigour of Eastern European countries.
• Spirits recorded strong growth (+12.4%**) thanks to Ballantine’s (Germany, Eastern Europe), Havana Club (Germany, Greece), Jameson (Ireland, Russia), Beefeater (Spain, UK), Martell (UK, Russia)and Chivas Regal (Germany, Russia).
• The wine portfolio showed signs of recovery. Over the 3rd quarter, Jacob’s Creek recovered in the UK while Montana and Campo Viejo continued to grow.
• France: € 494 million (+2.6%, that is organic growth* of +1.6%)
Aniseed market stabilisation and growth of the Ricard brand were confirmed, as testified by Panel IRI/ Infoscan Census 12 months: Ricard (+4.3%) compared to the aniseed market (+3%). Other strategic brands experienced strong growth, such as Ballantine’s, Chivas Regal and Havana Club.
Conclusion and outlook
Commenting on these results, Patrick Ricard, Chairman and CEO, stated: “ These very good results are in line with our expectations and indicate favourable prospects for the second half year. We therefore confirm, guidance of around 20% growth in net profit from ordinary activities (Group Share), excluding foreign exchange impact, for the full year.”