ACCELERATION
Pernod Ricard, the world’s second largest spirits business, has hoisted its annual profits outlook after unscrewing the top on a forecast-beating rise in first-half earnings.
Buoyed by strong demand in China, India and its travel retail arm, Pernod Ricard said yesterday that it was now targeting an organic rise of 4 to 6 per cent in underlying profit for the year to end-june 2018.
This compared to a previous forecast of 3-5 per cent growth issued at the time of the group’s last annual results in September.
Pernod Ricard, Scotland’s second biggest whisky company, with brands including Ballantine’s and Chivas Regal, revealed that first-half group sales rose 5.1 per cent to €5.08 billion (£4.47bn).
Profit from recurring operations lifted 5.7 per cent to €1.49bn. The outturn exceeded drinks analysts’ forecasts for a 4.6 per cent rise in organic sales and a 4 per cent rise in profits. Net profit was up 25 per cent at €1.15bn.
The company said sales in India, its second biggest market, jumped 8 per cent in
0 Digital and innovation remain core to strategy, Pernod Ricard says
ALEXANDRE RICARD the first trading half to enddecember as the initial impact of a ban on alcohol sales near motorways in the country had eased.
Pernod Ricard also did well in China, with sales growth of 8 per cent driven by demand for Martell cognac and Chivas whisky. In the United States, its largest market, sales rose 3 per cent, with Jameson Irish whiskey continung to shine despite price increases after having previously passed the threemillion-case milestone in Pernod Ricard’s last full trading year. Alexandre Ricard, group chief executive and chairman, hailed the latest trading half as “a very good semester, with an acceleration versus full year 2017, in particular in China, India and global travel retail”.
He said the group would keep focused on “digital” initiatives and pricing. Similar to big spirits drinks rivals like Diageo and Remy Cointreau, Pernod Ricard gave warning about the adverse impact of foreign exchange.
The group said the euro’s rise against the dollar would
“A very good semester, with an acceleration versus full year 2017, in particular in China, India and global travel retail”.