FRANCE: Allied acquisition buoys Pernod
Pernod Ricard has issued its figures for the first half of 2005/2006.
The French wine and spirits company said today (23 March) that net profit for the six months to 31 December 2005 soared on the back of its acquisition of Allied Domecq by 58% year-on-year to EUR471m (US$568m). This was based on sales in the period of EUR3.3bn, a leap of 66.7% on the corresponding period a year earlier. Overall profit from operations for the company was up by 70% to EUR767m.
Stripping out the Allied brands, sales were up 4.5%, with all four of Pernod's original premium brands bringing in growth. Chivas sales rose by 13%, Jameson saw sales grow by12%, while the Glenlivet and Martell saw sales rise by 10% and 9% respectively.
"The contribution generated by the Allied Domecq brands, from this first half year period of five months, is in line with our expectations (of) EUR486m after advertising and promotion," Pernod said.
Regionally, Pernod saw profits in the Americas double, while earnings in Asia/Rest of the World rose by 14.6%. The company noted that it now achieves over 50% of its profits from Asia and the Americas. In organic terms, sales in the Americas increased by 5.5% while Asia/Rest of the World sales were up by 13.1%. In Europe, sales were flat at 0.2%, with France registering a drop of 1.2%.
The company said that the results highlighted the speed and success of the Allied integration process. "These good figures inspire confidence for the full year and enable us to envisage currently a top of the range growth of 10% to 15% in earnings per share," Pernod's chairman and CEO Patrick Ricard concluded.
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