just The Facts - Pernod Ricard's YTD results
Pernod released its YTD results today
Asia/Rest of the World
The region reported a slowdown in growth, up 12% organically over the same period last year. Martell posted strong organic sales growth, up 18% in YTD, bolstered by an 11% price/mix growth. A slowdown in the third quarter was exacerbated by significant shipments in the half-year, Pernod said. Indian whiskies grew YTD organic sales by 20% but Scotch whiskies “encountered continued weakness” in Korea and Thailand and a slowdown in China, Pernod said.
Despite the slowdown, China still posted an organic net sales jump of 11%, with Pernod hailing Jacob’s Creek and Absolut as new growth drivers. In Thailand, Pernod said there was a “structural decline” in 100 Pipers, but double-digit growth for Absolut and wine. Meanwhile, Africa/Middle East posted a 12% organic sales growth for YTD.
The region saw net sales increase by 7%, or 6% organically, with Jameson (up 23% in volumes), Glenlivet (up 15% in volumes), and Malibu (up 6% in volumes) driving growth, Pernod said. The US posted 7% organic net sales growth while Pernod flagged a slowdown in Brazil without giving details.
Europe (excluding France)
Net sales hit EUR1.66bn (US$2.17bn), representing “stable organic development”, Pernod said without giving details. Jameson, Chivas, Havana Club, Beefeater and Absolut performed well but Ballantine's declined because of tough conditions in Spain, the company said.
There was double-digit organic sales growth in YTD for ArArAt and Olmeca in Russia (19% sales growth in the country) to compensate the ongoing decline of Ruavieja and Becherovka in the difficult markets of Spain and Czech Republic respectively, Pernod said. Kazakhstan posted 30% organic sales growth, with Pernod calling it a “very promising market”.
Western Europe showed a “slight improvement”, Pernod said, however Southern Europe was said to remain “challenging”. Germany continued double-digit growth for Pernod's Top 14 brands, while there was renewed growth in the UK and Ireland.
YTD organic sales fell by 13% as the region underperformed. However, Absolut posted a YTD volumes increase of 14% over a year prior, while Havana Club saw volumes jump by 18% over the same period.
Sales of Martell were up by 16% organically, while Jameson was up by 16%. Beefeater saw “remarkable growth”, particularly in Spain, the US and Russia, Pernod said. Scotch whiskies slowed but there was an organic sales increase for Chivas (up by 6%) and record growth for The Glenlivet (organic sales up by 21%). Problems in France saw Ricard organic sales fall by 17% and volumes drop by 18%. Mumm organic sales fell by 4% and volumes decreased by 5% in the same nine-month period.
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