Press releases
22/07/2010 : Trading Update
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Trading update for the 2009/10 financial year (ended 30 June 2010)
Press Release - Paris, 22 July 2010
The 2009/10 financial year saw an improving economic environment compared to the previous year, especially over the second half of the year. Pernod Ricard continued to benefit from its comprehensive portfolio of premium brands and its powerful global distribution network, which is the leader in emerging markets.
Over the full year 2009/10, organic sales growth reached 2%*, driven by the Top 14. After taking into consideration a negative foreign exchange effect of around 1% (which turned positive over HY2) and a negative group structure effect of 3%, relating mainly to the disposal of the Wild Turkey and Tia Maria brands, 2009/10 sales reported a slight decline of 2%.
The strong sales growth over the second half-year (9%*) was aided by a gradual recovery in consumer spending in mature markets, higher growth momentum in emerging markets and favourable comparatives, in particular in the third quarter (impact of the crisis and destocking by distributors in many countries over the previous financial year).
After the strong technical recovery in the third quarter, the fourth quarter sales trend was in line with our expectations, with organic growth estimated at close to 3%*, driven by the Top 14 (6%*). Asia and Latin America remained very buoyant. The improved trend was confirmed in Eastern Europe, the US and Duty Free markets. Sales continued to decline overall in Western Europe (especially in Spain, in the UK, and more recently in Greece).
For the full 2009/2010 financial year, we target organic growth in profit from recurring operations of between 3%* and 4%* (compared to about 3%* previously), while having increased advertising and promotional expenditure as planned.
Final and detailed 2009/10 financial year sales and results on Thursday, 2 September 2010.
* on a like-for-like basis
About Pernod Ricard
Pernod Ricard is the world’s co-leader in Wines and Spirits with consolidated sales of € 7,203 million in 2008/09. Created by the merger of Pernod and Ricard (1975), the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008).
Pernod Ricard owns one of the most prestigious brand portfolios in the sector: Absolut Premium Vodka; Ricard pastis; Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies; Jameson’s Irish Whiskey; Martell cognac; Havana Club rum; Beefeater gin; Kahlúa and Malibu liqueurs; Mumm and Perrier-Jouët champagnes; and Jacob’s Creek, Montana, Campo Viejo and Graffigna wines.
The Group believes in a decentralised organisation, with 6 Brand Owners and 70 Distribution Companies established in each key market, and employs a workforce of around 19,000 people. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption of its products.
Pernod Ricard’s strategy and ambitions are founded on 3 key values that guide its development: entrepreneurial spirit, mutual trust and a strong sense of ethics.
Pernod Ricard is listed on the NYSE Euronext exchange (Ticker: RI; ISIN code: FR0000120693) and is a member of the CAC 40 index.
To read more, please go to www.pernod-ricard.com
Contacts Pernod Ricard
Olivier CAVIL / Communication VP T: +33 (0)1 41 00 40 96
Denis FIEVET / Financial Communication - Investor Relations VP T: +33 (0)1 41 00 41 71
Florence TARON / Press Relations and External Communication Manager T: +33 (0)1 41 00 40 88
