Pernod Ricard has recorded strong profit growth in its 2017-18 full-year results, thanks to sales growth in India and China and the pronounced growth of its Martell cognac and Jameson whisky brands.
Pernod Ricard’s organic profit rose 6.3% to €2.36 billion, as sales volumes of the company’s international spirits grew 7% compared to 4% in the previous year’s results, with both Martell and Jameson recording sales growth of 14% over the year.
Overall net sales of €8.99 billion were roughly in line with last years €9 billion figure, while the company’s reported net profit of €1.6 billion represented a 13% increase when compared to last year’s figure.
Net sales grew 9% in Asia to €3.65 billion, and Pernod Ricard claimed that the return sales growth in both India and China was the main contributing factor to this rise.
Sales in the Americas also rose 6%, and sales of the company’s spirits brands in the US are now growing at roughly the same rate as in Mexico and Brazil.
Growth was “modest” in Europe however, as strong performances in Eastern Europe and Germany were offset by difficulties in France and Spain.
Pernod Ricard also benefited from the strong sales growth of its international spirits portfolio which, with the exception of Ricard and Royal Salute, all recorded sales rises.
Havana Club, Malibu and Perrier-Jouët all recorded net sales growth of 6%, which offset the 6% sales decline of Ricard and the 2% drop recorded by Royal Salute.
Pernod Ricard chairman and CEO Alexandre Ricard said: “FY18 was a very strong year. Consistent strategic implementation has enabled us to deliver a significant improvement in business performance while investing for the future.
“Our Sales have accelerated and diversified, and our margins improved.
In FY19, in a still uncertain geopolitical and monetary environment, we will continue consistently implementing our strategy.
“Our guidance for FY19 is organic growth in Profit from Recurring Operations between 5% and 7%.”
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