FRANCE: Martell, Glenlivet, Perrier-Jouet shine in Pernod Ricard Q1, but sales growth slows

• Net sales in Q1 rise by 5% to EUR2.2bn (US$2.86bn)
• Asia/RoW delivers "moderate" growth in three months to end of September, up by 11%
• US provides double-digit sales rise
• Targets FY profits growth of 6% for fiscal 2012/13

A healthy jump in sales in the US has helped balance a less impressive performance in Asia for Pernod Ricard in its fiscal first quarter.

The Paris-headquartered group said today (25 October) that group net sales rose by 5% to EUR2.2bn (US$2.86bn) in the three months to the end of September. The company branded the quarter a "good overall performance" in view of what it described as a difficult comparison with the same period last year.

In its Asia/Rest of the World region, Pernod reported a "moderate" organic sales uplift of 11%, with Martell remaining the "main growth driver".

"Jacob's Creek, Absolut vodka and Champagne are continuing to deliver a "strong performance", but the quarter was "challenging" for Scotch whiskies, the group said. China saw an 18% sales uplift, but Africa/Middle East slowed.

In the Americas, Pernod saw organic sales growth of 7%. The US reported a "double-digit" sales rise, partly helped by "pricing acceleration".

The group saw "softness" in Western Europe, excluding France, with sales falling 6%, while Spain remains "challenging".

In Pernod's domestic market of France, sales dropped by 8% in the quarter to EUR149m. This was attributed to tax hikes averaging 14% at the start of the year.

“In a less favourable macro-economic environment we realised a good overall performance in the first quarter,” said Pierre Pringuet, Pernod's CEO.

Looking ahead, he added: “We remain confident in our capacity to continue to grow and are setting a target for organic growth in Profit from Recurring Operations close to +6% for the 2012/13 financial year."

Shares in Pernod were down this morning by 0.30% at EUR84.33. 

To read the company's official statement, click here.