FRANCE: Pernod Ricard confirms FY targets as nine-month sales hold firm
- Nine-month sales increase by 7% to EUR6.31bn (US$8.36bn)
- 'Emerging markets' deliver 17% growth, 3% rise comes from 'mature markets'
- Q3 sales increase by 3% To EUR1.70bn
- Pernod announces completion of post-Vin & Sprit refinancing
Pernod Ricard confirmed today that it has completed its refinancing programme
In a trading update released this morning (26 April), the company said that sales in the nine months to the end of March came in 7% up on the same period a year earlier at EUR6.32bn. The increase was in line with Pernod's H1 numbers, when sales were up by 8%. Sales in Pernod's emerging markets in the year so far were up by 17%, while the company's mature markets saw sales inch up by 3% in the year so far.
China posted a 22% leap in sales in the period, while India followed suit, with a 25% rise in sales. Meanwhile, Russia rose by 29% and Brazil delivered "strong growth". However, Western Europe slipped by 1%, while Mexico saw sales fall by 13% due to "the overhaul of the commercial policy to support the high-value strategy".
For the third quarter, sales were up by 5% year-on-year at EUR1.70bn. The rise came despite the shorter lead time to Chinse New Year, which fell on 23 January this year rather than on 3 February last year. France, however, took a battering, as expected, with sales plunging by 42% in the quarter.
“We are very pleased with the group’s performance over the first nine months, on the back of which we can confirm our targets for the current financial year,” said CEO Pierre Pringuet. Following Pernod's H1 results in February, Pringuet raised the full-year forecast for growth in organic profits from recurring operations "close to 8%".
At the same time, Pernod said today that it has completed the refinancing of the debt it accrued when it bought Vin & Sprit in 2008. The company has signed a new EUR2.5bn five-year multi-currency revolving credit facility, which will be used for general corporate purposes and for refinancing all outstanding amounts under the EUR3bn, US$10.14bn and EUR2.02bn multi-currency facilities from March 2008.
"This ... marks the final step in the refinancing of the debt related to the Vin & Sprit acquisition," said finance MD, Gilles Bogaert. "Pernod Ricard’s average debt maturity now exceeds seven years.”
For the official YTD announcement, click here.
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