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Pernod Ricard H1 Fiscal-2017 - results data

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Earlier today, Pernod Ricard reported results for the first half of its fiscal-2017. Group sales rose by 4% in the six months to the end of December, while net and operating profits were up similarly. Here, just-drinks considers Pernod's results on a by-region and -brand basis.

CEO Alex Ricard hailed a "strong" first half of fiscal-2017 for Pernod Ricard

CEO Alex Ricard hailed a "strong" first half of fiscal-2017 for Pernod Ricard

Pernod Ricard Half-Year Fiscal-2017 - Net Sales by Region

Source: Company results

The group saw the top-line increase across all three of its reporting regions. Most notable was The Americas - up 7% - with the US being singled out. Jameson posted "continued very strong growth" in the country, which saw group sales rise by 5%. The company warned, however, of a "growth slowdown" in the US during the second quarter. Outside of the US, the rest of The Americas increased sales by 10%: Travel Retail in the region jumped 14%, although Brazil slid by 10%.

Asia/Rest of the World was up 3% in the half-year, with India slowing during the period due to "several adverse regulatory changes". The second half of fiscal-2017 will be affected by the ongoing fallout of demonetisation and the pending ban on highway outlets, the group said. China boasted a "clear improvement on the year-prior, with sales rising by 4%. Japan was up by 6%, but Korea fell by double digits, due to "adverse market conditions, destocking and transition to new organisation".

Europe, which raised sales by 3%, had a good half-year, with France (+6%), Spain (+5%) and the UK (+7%) all performing well. The region's Travel Retail operations struggled "in a context that remains difficult". Russia drove a "strong rebound" for Pernod in Eastern Europe, with sales in the country jumping by 15%.

Pernod Ricard Half-Year Fiscal-2017 - Operating Profits by Region

Source: Company results

Operating profits rose by 4% in both organic and reported terms although, adjusting for an earlier Chinese New Year (28 January this year, 8 February in 2016), the bottom line was up by 3%. The slight dip in Asia/Rest of the World was more than offset by The Americas, where operating profits jumped by almost 16%.

Pernod Ricard Half-Year Fiscal-2017 - Strategic International Brands

SalesVolumesPrice/Mix
Absolut+1%+2%-1%
Chivas Regal-1%--1%
Ballantines+6%+7%-1%
Ricard+2%+3%-1%
Jameson+20%+16%+4%
Havana Club+5%+7%+2%
Malibu+7%+6%-
Beefeater+5%+4%+1%
Martell+7%+7%-
The Glenlivet--1%+1%
Royal Salute+3%+7%+4%
Mumm+3%+4%-1%
Perrier-Jouet+9%+5%+4%
Strategic Intl Brands+6%+5%-

Source: Company results

The star performer from Pernod's Strategic International Brands stable was Jameson, which reported a 20% leap in sales - a healthy price/mix for the brand also bodes well for its more premium SKUs. Absolut appears to have stabilised: Two years ago, the brand saw sales and volumes both slip by 1% Of concern, however, will be The Glenlivet, with the company claiming the single malt Scotch brand is "in transition". Martell was helped in China by the earlier CNY, although the Cognac also performed well outside its flagship market - the US and Travel Retail Americas were the most successful markets for Martell in the half-year.

Finally, take a look below to see how important Absolut's fortunes are for Pernod. The brand accounts for almost 23% of the volumes from the company's Strategic International Brands.

Pernod Ricard Half-Year Fiscal-2017 - Strategic International Brands Volumes

Source: Company results


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