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Pernod Ricard half-year fiscal-2018 sales performance - results data

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In early-February, Pernod Ricard reported a 5.1% lift in sales for the six months to the end of December. The top-line had to deal with a strong US dollar, however, with reported sales coming in flat for the period. Here, just-drinks takes a closer look at the company's performance by region - as well as the numbers behind its main brands - in the first half of the group's fiscal-2018.

Pernod Ricard Half-Year Fiscal-2018 - Sales by Region

AmericasAsia/Rest of the WorldEuropeGroup Total
H1 20171431204015895061
H1 20181399206516195082

Source: Company results

  • Americas - +6% organic (-2% reported)

The US posted a 3% lift in half-year sales for Pernod, a slight dip on Q1's +4%. Predictably, Absolut "remains in decline" while Jameson "continued strong growth" in the country. Tequila brands Altos and Avion were both "very strong" in the half-year, Pernod said.

Beyond the US, The Americas region was up 10%, with Brazil driving performance: The country gave Pernod an 11% sales lift. While Canada was stable, with Q2 doing "better" following destocking in Q1, the region's Travel Retail channel increased sales by 3%.

  • Asia/Rest of World - +7% organic

Despite a later Chinese New Year, Pernod still enjoyed a strong six months in the country. China posted an 8% sales rise, with Cognac brand Martell up 5%. Price increases are set to be introduced across the Martell range in the second half, Pernod said, although these are not expected to affect performance until fiscal-2019 (which starts on 1 July this year). The launch of a 12-year-old iteration helped the Chivas Scotch whisky mark post a "very good H1" in China.

India bounced back in the period, following November's demonetisation move. Sales in the country were up 9%, as the effects of the country's highway ban - forbidding alcohol sales within a certain distance of India's main roads - have now worked their way through.

Africa & the Middle East reporting region was up double digits thanks in part to political stability in Turkey. Pernod's Travel Retail operations in Asia did particularly well, posting a 19% sales increase, although the group notes its commercial phasing for the current fiscal year has been skewed to H1 and "will reverse in H2".

  • Europe - +3% organic

Russia was up for Pernod in the period by 15%, driving a 12% increase in Eastern Europe. In the west, meanwhile, a "continued tough environment" in France was the reason behind the 4% sales slip, as Spain performed similarly; the market is "decelerating" following the upheaval surrounding Catalonia in recent months.

The UK increased sales by 8%, with Monkey 47, Campo Viejo, Absolut and Jameson credited. Germany had a "good H1" thanks partly to brand Lillet benefiting from the country's burgeoning aperitif segment.

Pernod Ricard Half-Year Fiscal-2018 - Strategic International Brands

SalesVolumesPrice/Mix
Absolut+2%+3%--
Chivas Regal+2%+2%+1%
Ballantine's+2%+3%-1%
Ricard-8%-8%--
Jameson+12%+11%+1%
Havana Club+7%+5%+2%
Malibu+7%+5%+1%
Beefeater+3%+1%+1%
Martell+10%+8%+3%
The Glenlivet+1%+3%-2%
Royal Salute-5%-5%--
Mumm---2%+1%
Perrier-Jouet+11%+8%+3%
Strategic Intl Brands+4%+1%+3%

Source: Company results

Despite continuing to struggle in its flagship US market, Absolut reported improvements in both sales and volumes, albeit not in the same ballpark as Jameson. Credit must also go to Chivas: A year ago, the Scotch brand was down 1% in sales on flat volumes. A 2% rise in both for the half-year will be a result of the decision last year to restart investment behind Chivas in China, a market that accounts for about 5% of the brand's total sales.

Martell enjoyed a double-digit six months (+10%), despite the later Chinese New Year pushing pre-festive sales from Q2 into Q3. For the full fiscal-year, Pernod said it is targeting "high-single-digit" volume rises from Martell.

Pernod Ricard Half-Year Fiscal-2018 - Strategic International Brands Volumes

AbsolutBallantine'sJamesonChivas RegalRicardHavana ClubMalibuBeefeaterMartellThe GlenlivetMummPerrier-JouetRoyal Salute
H1 Fiscal-20176.23.93.62.62.52.31.81.61.30.60.50.20.1
H1 Fiscal-20186.4442.62.32.41.91.61.40.60.50.20.1

Source: Company results


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