Pernod Ricard Q4/FY 2016 results - Preview
Pernod Ricard will announce its fiscal-2016 results on Thursday
On Thursday (1 September), Pernod Ricard will report its full-year results. Here, just-drinks takes a look at how the group has fared in its fourth quarter, the three months to the end of June.
- The quarter kicked off with news that Pernod was creating a new senior commercial position in the US. Julien Hémard, who previously headed up the Pacific region for the group, was lined up to become the US chief commercial officer for spirits. Hémard assumed the position on 1 July.
- Following a trading update for the first nine months of fiscal-2016, Pernod's MD of finance & operations, Gilles Bogaert, boasted of Jameson's rude health in the US. "Growth is coming from everywhere (in the country)," he said.
- In early-May, Pernod announced plans to take its Our/Vodka project to the export stage. The concept, based on the production of vodka in specific cities, has been expanded to allow the distilleries to ship their product beyond their domestic markets.
- Then, also at the start of May, the company confirmed its intention to offload the Paddy Irish whiskey brand. Discussions were held with US-based Sazerac, leading to an agreement later that month.
- The company reiterated its aim to target the US in May, when it reorganised its marketing set-up in the country, structuring it around "five key moments of conviviality".
- Towards the end of the month, a change of operations director for the European Travel Retail unit was confirmed. Ben Gibson reports in to both Pernod Ricard Travel Retail MD Ian Williams and Pernod Ricard UK MD Denis O'Flynn, although O'Flynn announced his pending departure at the end of June.
- Pernod's Irish Distillers unit revealed details of a restructure of the Jameson portfolio, with three new additions to the range.
- Another slew of HR changes were confirmed in mid-June, this time in Asia and the Americas.
- Towards the end of the quarter, one analyst suggested Pernod's Absolut vodka brand is showing more positive volume trends in the US, despite continuing to lose market share.
- Finally, right at the end of June, Pernod said it intended to close its Morris Winery in Australia. Last month, however, Casella Family Brands agreed to buy the fortified wine producer, for an undisclosed price.
- Net profits were up by 13% to EUR896m (US$1.01bn)
- Net sales increased by 7% to EUR4.96bn
- Operating profits rose 6% to EUR1.44bn
- Pernod confirmed full-year operating profits guidance of +1% to +3%
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