- Wine & Spirits: 5.4% organic sales growth - Strong growth 12 key brands: 7.3% (volume) - Asia and North America: two growth engines
Wine & Spirits sales (excluding duties and taxes) for the 1st quarter ending 31 March 2004 amounted to € 704 million, compared to € 713 million for the same period last year.
• on a constant structure and exchange rate basis, sales increased by 5.4% • sales were significantly affected by adverse exchange rate movements (-5.3%), primarily as a result of the appreciation of the Euro against the US dollar. • structure effect (-1.3%) is primarily due to the disposal of Busnel calvados and Crus et Domaines de France (wine merchants).
Sustained development of 12 key brands Aggregate 12 key brands volumes increased by 7.3%, with Chivas Regal (+8%), Martell (+6%), The Glenlivet (+8%), Jameson (+14%) and Havana Club (+14%) enjoying the highest growth rates, while local brands experienced slight decreases.
Asia and North America: 2 key growth engines
- Impressive growth in Asia-Pacific The Asia-Pacific and Rest of World region experienced the greatest progression, posting a 12.9% organic sales growth rate. China, Hong Kong, Malaysia Taiwan and Singapore progressed strongly thanks to Chivas and Martell sales. The strong development of local brands enabled India and Thailand to enjoy double digit sales growth.
- Dynamism of North America North America achieved strong dynamic performances (+8.6% organic growth rate). In the USA, Chivas and Martell depletions* were positive. South and Central America posted contrasting performances (+0.6% organic growth rate), with the turnaround of operations in Brazil and Argentina offset by a disappointing performance in Venezuela.
- Slight recovery in France France achieved an organic growth rate of + 4.6%, partially as a result of technical effects. In addition to Ricard, Jameson, Havana Club, Chivas, Aberlour and Wyborowa achieved good performances.
- Stability of sales in Europe (excluding France) Europe also experienced contrasting performances, with Greece, Italy and Scandinavia enjoying good growth, while the United Kingdom, Ireland and Spain had more modest growth. Different non-recurring factors adversely affected this region's performance during the 1st quarter of 2004, without impacting its full year growth prospects.
Group consolidated sales amounted to € 726 million, compared to € 740 million for the 1st quarter of 2003. The Group continued to disengage itself from non-strategic activities, which now account for only 3% of its sales.
As a result, this favourable beginning of year strengthens the Group's confidence for 2004.
* Sales by distributors to non-home consumption businesses and retailers
