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%.
The rate of consolidation in the spirits category is markedly slower than that of many consumer industries. So, could the news this week that Suntory is set to buy Beam Inc trigger a wave of M&A? Past...
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