Press releases

Group portfolio premiumisation continued; the 15 strategic brands grew twice as fast in value(1) as in volume (+12% versus +6%), due to price increases and an improved mix. Emerging markets(2) (+22%(1)) as well as premium spirits(3) (+14%(1)) remained the leading growth drivers.  Organic growth by spirits and wines were 9.8% and 6.6%, respectively.

In the 3rd quarter 2007/08, consolidated net sales were down 1.0% to € 1,378 million, including organic growth of 7.1% (with negative foreign exchange and group structure impacts of 6.2% and 1.7%, respectively). Organic growth of the quarter was due to: 
   • the continuing expansion of emerging markets, which now account
     for close to 30% of Group sales,
   • continuing growth in the US, against the background of an 
     increasingly difficult environment, due to the dynamism of premium
     brands,
   • good performance by other markets, notably Western Europe.

All geographic regions reported strong growth:

• Asia/Rest of World: € 1,593 million (+8.7%, with organic growth at +13%)
Martell, Ballantine’s and Chivas Regal generated nearly 2/3 of Asia/Rest of World growth. China and India accounted for 2/3 of growth in the region and remained the first and second contributor to the Group’s organic growth, respectively.
   • China (sales: +26%(1)): the whisky category achieved slight growth.
     The cognac category remained highly dynamic in spite of the strong
     price increases,
   • India (sales: +41%(1)): local whisky brands continued their strong
     growth, whereas the imported brands had outstanding growth,
   • Malaysia, Indonesia, Vietnam, Singapore and Taiwan grew strongly,
   • Thailand experienced a sharp recovery in the 3rd quarter with 100 
      Pipers.

 
• Americas: € 1,280 million (-3.8%, with organic growth at +8%)

   • North America
     In North America (US, Canada, Mexico), organic growth reached
     +4.5%. 
   - US: Jameson, The Glenlivet, Wild Turkey, Malibu, Perrier Jouët, 
     Mumm Napa continued their vigorous growth in a more difficult 
     environment for certain brands (Kahlua, Chivas Regal, Beefeater),
   - Canada and Mexico: international brands, in particular the 15
     strategic brands, achieved a good performance, whereas Mexican
     brandies Presidente and Don Pedro were down.

   • Central and South America
Organic growth was outstanding in Central and South America at +24%. Chivas Regal, Havana Club, Ballantine’s and Something Special reported strong growth.  

• Europe (excluding France): € 1,695 million (+5.4%, with organic growth at +8%)
The Europe region continued to report strong growth since the start of the financial year.

   • Central and Eastern Europe
Central and Eastern Europe generated more than 60% of Europe’s growth, thereby increasing its relative size in the region. Russia was the third contributing country to Group organic growth. The other main contributing countries to such outstanding growth were Poland, Ukraine and Romania.

   • Western Europe
Western Europe recorded solid growth. Spain (Ballantine’s, Chivas Regal), the UK (Jacob’s Creek, Malibu), Ireland (Jameson) and Greece (Havana Club) achieved satisfactory growth, whereas Germany and Italy were in decline.

• France: € 524 million (+6%)
France continued its sustained growth. Whiskies (Chivas Regal, Ballantine’s, Jameson, Aberlour, The Glenlivet, Clan Campbell) and the Mumm champagne drove this growth.  Ricard was stable in a market in slight decline.

Conclusion and outlook

Patrick Ricard, Chairman and CEO of Pernod Ricard, commented: “The dynamism noted in the third quarter of 2007/08 is in line with our expectations and again reflects the quality of our brands portfolio and the strength of our distribution network. Sales for the first nine months of the 2007/08 financial year enable us to confirm our 2007/08 full-year guidance for growth in operating profit from ordinary activities, on a like-for-like basis(4)   of at least +12%”.

(1) Organic growth
(2) GNP/Capita < USD 10,000
(3) Brands >= Chivas 12 year old or Martell VS
(4) Exchange and Group structure

 Download the appendices (pdf)



About Pernod Ricard

Created by the merger between Pernod and Ricard (1975), the Group has undergone sustained development, based on both organic growth and acquisitions. The purchase of part of Seagram (2001) and the acquisition of Allied Domecq (2005) have made Pernod Ricard the second largest player in the wine and spirits with industry sales of € 6.4 billion in 2006/07; it is also the leader in the “ultra premium” spirits market.
Pernod Ricard benefits from a portfolio comprising some of the most prestigious brands in the sector: Ricard aniseed, Ballantine’s, Chivas Regal and The Glenlivet Scotch whiskies, Jameson Irish Whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well as Jacob’s Creek and Montana wines. On 31 March 2008, Pernod Ricard announced the acquisition of Vin & Sprit and its vodka brand Absolut.
The Group favours a decentralised organisation, with "Brand Owners" and "Distribution" companies established in each key market, and employs a workforce of around 18,000 in 70 countries.
In addition, Pernod Ricard is strongly committed to a policy of Corporate Social Responsibility and encourages responsible consumption in order to prevent alcohol misuse and abuse.

Download the slides and photos on the “Photolibrary” page of the website’s “News” section.

Shareholders’ agenda: 2007/08 full-year sales – Thursday 24 July 2008

 
Contacts Pernod Ricard
Francisco de la VEGA / Communication VP  Tel: +33 (0)1 41 00 40 96
Denis FIEVET / Communication - Investor Relations VP                                    Tel: +33 (0)1 41 00 41 71
Florence TARON / Press Relations Manager       Tel: +33 (0)1 41 00 40 88