Focus - Pernod Ricard's FY Performance by Region, Brand
Pernod Ricard released its full-year results today
Asia/Rest of the World - which accounts for 40% of total FY sales - delivered sales growth of 7% year-on-year, hitting EUR3.43bn (US$4.5bn).
- China was up by 9%, which represented slower growth than a year earlier. While Martell, Jacob's Creek and Absolut delivered double-digit growth in the country, Scotch and "the most exclusive" spirits suffered from a challenging year.
- India saw Pernod's local whiskies deliver a sales lift of 16%, with the company's top 14 brands rising collectively by 17%.
- Travel retail, and Africa/Middle East both posted double-digit sales increases in the year.
- South Korea and Thailand were both described as challenging, the former due to a decline of the traditional on-trade, while the latter saw the 100 Pipers brand suffer.
The Americas - 27% of sales - reported a 7% lift in sales, which came in at EUR2.32bn.
- The US rose by 8%, driven by similar collective growth from Pernod's top 14 brands. Top performers were Jameson (+26%) and The Glenlivet (+22%).
- Brazil proved a struggle in the fiscal year, due to a "more challenging macro-economic environment" and the application of value added tax reform in the period. Mexico was up by 5% while travel retail in the region increased by 7%.
Europe, excluding France - 25% of total sales - was a game of two geographical halves. Sales for the region as a whole were flat in the year, at EUR2.13bn.
- Eastern Europe jumped by 11% year-on-year, predominantly thanks to Russia's 16% sales leap. Poland posted 2% growth, while Ukraine "continued to grow, despite a more challenging macro-economic environment.
- Western Europe, however, saw sales slide by 3% with Southern Europe and Spain in particular, struggle in the 12-month period. The UK reported "quasi-stability" but Germany and travel retail operations in the region were credited with "good performances.
France - 8% of group sales - continued to prove problematic, with sales in the year falling by 7% to EUR695m. The recessionary environment has been exacerbated by a steep climb in excise duty that was introduced at the beginning of 2012. The company claimed, however, that its underlying performance is "in line with a declining spirits market" overall.
2012-13 saw several brands in Pernod's portfolio hit record volumes.
- The company highlighted Jameson, which reported 17% value growth and a 10% lift in volumes. The Irish whiskey brand is now the second largest contributor to group growth.
- Also hitting new highs was Absolut, with sales rising by 5% and volumes up by 2%.
- Martell also set a new record, with sales jumping by 15% on a 5% lift in volumes.
- The Glenlivet achieved record growth, jumping by 22% in value and by 18% in volume.
- Elsewhere, Chivas Regal sales rose by 5% on flat volumes, but Ballantine's struggled - sales fell by 6% in the year with volumes slipping by 4%.
- On the Champagne front, Mumm reported decreasing sales (-4%) and volumes (-5%), but Perrier Jouet - also a record breaker - saw sales increase by 7% on a 1% lift in volumes.
- Collectively, Pernod's priority premium wine brands - Jacob's Creek, Brancott Estate, Campo Viejo and Graffigna - reported 2% sales growth as volumes dipped by 1%.
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