FRANCE: Pernod Ricard bemoans "more difficult than anticipated" FY as sales, profits slide
- Full-year net profits tumble by 14% to EUR1.03bn (US$1.36bn)
- Sales in 12 months to end of June fall by 7% to EUR7.95bn
- Operating profits decrease by 8% to EUR2.06bn
- Volumes of top 14 brands dip by 1%
Pernod Ricard's net profits were down by 14% in the full-year
Pernod Ricard has reported a double-digit fall in full-year net profits as volumes of its headline brands dipped slightly.
While the company flagged a "highly unfavourable" foreign exchange effect in the 12 months to the end of June, group sales were "adversely affected" by one market: China saw sales in the period plunge by 23%.
A 1% slide in volumes from Pernod's top 14 brands compared to flat sales from the portfolio in the previous fiscal year, when net profits and sales increased by 3% and 4%, respectively.
CEO Pierre Pringuet
“Despite an environment that was more difficult than anticipated, we have delivered the guidance announced in February.
We are seriously committed to the Allegro project: this operational efficiency project must enable us to maximise our future growth while generating a hard figure of EUR150m of savings.”
Deputy CEO Alexandre Ricard
“In this context, which will remain challenging, we anticipate a gradual improvement in our sales growth, and we will increase the investment behind our brands and priority innovations in order to sustain long-term growth.”
Of the company's strategic brands, Chivas Regal and Royal Salute were the worst performers (both down by 7% in volume terms), with Martell close behind (down by 6%). Jameson continued its strong performance, with volumes rising by 9% in the fiscal year.
In regional terms, Asia/Rest of the World produced a 12% fall in FY sales, with the Americas dropping by 8% and Europe (which now includes Pernod's numbers in France) sliding by 2%.
Pernod will release full-year guidance for fiscal-2015 when it reports its Q1 sales on 23 October.
To read in-depth coverage of Pernod's results by region and brand, click here
For coverage of a post-results press conference Pernod held in Paris today, click here
To read the company's official statement, click here.
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