Pernod Ricard today reported sales of €2,292 million for the first quarter of its 2018 financial year, up by +2% year-on-year. The growth figure was affected by an unfavourable foreign exchange impact over the period; organic growth stood at +5.7%.
The company singled out the strong performance of travel retail, notably in the Americas and Asia Pacific. Group sales climbed by +6% in the Americas, with an “acceleration of travel retail throughout the continent”.
Asia-Rest of the World sales grew by +7%, with a strong performance in China and “a rebound in travel retail and Africa/Middle East”, noted the company.
Europe sales rose by +3% year-on-year, thanks to strong growth in Eastern Europe and a modest increase in Western Europe, “with strong dynamism in Germany and UK but a decline in France and slow start in Spain”.
Emerging markets showed accelerating growth of +10%,
Group top line improvement was primarily driven by the Strategic International Brands (+8%), in particular from Martell, Absolut, Jameson, Ballantine’s, Chivas and Malibu. The Strategic Local Brands grew +2% with Seagram’s Indian whiskies growth still subdued due to the highway ban but strong growth in tequila and gin. Strategic Wines also had a strong quarter at +8%, thanks mainly to Campo Viejo. Innovation delivered an incremental +2% to overall group sales, said the company.
Chairman and Chief Executive Officer Alexandre Ricard said: “We have had a very good start to the year, with our growth accelerating and diversifying in terms of both markets and brands. This is again testimony to the success of the strategic direction we adopted two years ago. In an environment that remains uncertain, we confirm our FY18 guidance of organic growth in profit from recurring operations of between +3% and +5%. We will continue to implement our roadmap, in particular focusing on digital, innovation and operational excellence.”
