FRANCE: Pernod Ricard expects flat FY sales, profits growth

By | 17 July 2009

Pernod Ricard has said that it expects like-for-like sales to be broadly flat for its fiscal full-year, but operating profits will hit guidance thanks to lower advertising spend.

Organic net sales are likely to be "close to flat" for the 12 months to the end of June, compared to a year earlier, Pernod said in a trading update today (17 July).

Sales were dragged down by destocking and a fall in consumer spend in the second half of the year, falling by 6% in the third quarter and by around 3% in the fourth quarter, the French drinks giant said. Net sales on a reported basis are likely to be up 9% for the full-year, due to the added contribution of Vin & Sprit, and particularly Absolut vodka.

The sales performance for the fourth quarter is better than some analysts predicted.

A rise in like-for-like operating profits for the year is set to be at the lower end of the firm's guidance range, of between 3% and 5%.

This is due to "steady sales, combined with strictly controlled advertising and promotional expenditure and structure costs", Pernod said.

Net profits from recurring operations are expected to grow by 10% for the year, due to the "significant contribution of Absolut" and debt control.

The major emerging markets of China and India have continued to grow strongly throughout the year, said the group, which is the world's second largest wine and spirits group and owns Chivas Regal Scotch whisky, Jameson Irish whiskey and Havana Club rum.

Pernod will report its full-year results on 3 September. 

Sectors: Spirits, Wine

Companies: Pernod, Ricard, Absolut, Chivas Regal, Jameson, Havana Club

View next/previous articles

Currently reading -

FRANCE: Pernod Ricard expects flat FY sales, profits growth

There are currently no comments on this article

Be the first to comment on this article

Related articles

just the round-up - The week in drinks

The top ten stories published on just-drinks this week:

FRANCE: Pernod Ricard H1 sales dip

Pernod Ricard has reported a 3% drop in like-for-like sales for its fiscal half-year.

just the Answer - Simon Burley, Beefeater, Plymouth Gin brand director

In this, the first 'just the answer' of 2010, just drinks speaks to the international brand director for Beefeater and Plymouth Gin at Pernod Ricard's Chivas Brothers unit. Simon Burley has held the position for only a matter of weeks, having been appointed in October last year, but already he has high hopes for the brands, despite a tough year for the category in 2009.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page