Pernod Ricard has reported €7,059 million in overall sales for the first nine months of FY18, with all travel retail regions (USA, Europe and Asia) posting increases.
Overall organic growth was up +6.3%, driven by emerging markets, while reported growth was +0.2%.
In the Americas, the company said the travel retail sales rise was driven by strategic international brands (Martell, Chivas, Absolut and Jameson in particular).
Asia travel retail sales increased +11%, but H2 recorded a weaker performance. Pernod Ricard said Q4 is expected to be weaker for Martell due to “tight management inventories to ensure sustainable growth”.
The company said travel retail Europe sales were an improvement on FY17, linked in particular to the return of Russian travellers.
Looking at overall results regionally, growth was +6% in the Americas. Highlights include a return to growth in Brazil, improved performance in Mexico and continued good performance in Argentina and Cuba.
Year-to-date sales in Asia-Rest of World rose +10%, with China (+19%) and India (+14%) posting the highest increases. Korea sales were still in decline “due to Imperial” but the trend was improving vs FY17, said Pernod Ricard.
Europe saw a modest +2% increase. France and Spain posted declines while Germany (+6%), UK (+3%) and Russia (+10%) all recorded a rise.
Sales for the third quarter FY18 were enhanced by Chinese New Year and Easter phasing, totalling €1,977 million. Organic growth was +9.3% while reported declined -0.5%.
Pernod Ricard Chairman and Chief Executive Officer Alexandre Ricard said: “We have very strong year-to-date sales growth at +6.3%. Our strategy is consistent and driving results, in particular in terms of diversifying the sources of growth.
“We confirm our FY18 guidance given to the market on 9 February 2018 at the top-end of the range, with organic growth in profit from recurring Operations of c. +6%.”
