Absolut charge hits profits, but Pernod Ricard "in line" in fiscal-2015

Pernod Ricard has reported operating profits within its guidance for fiscal-2015, although the Absolut brand was hit by an impairment charge in the period.

While net sales in the 12 months to the end of June were up by 8% in reported terms, and by 2% organically, operating profits increased in the year by 2% in organic terms. The organic performance was in line with guidance of between 1% and 3% growth, which the company confirmed in February.

The company took an impairment charge on its Absolut brand of EUR404m in the period, which was "driven by lower growth in the US".

For coverage of Pernod Ricard's post-results conference call, click here

Sales from the Asia-Rest of the World side of the company were up by 4% as China returned to near-normal levels. Sales in the country were down by 2% compared to a 23% slump in fiscal-2014. The Americas generated a sale lift of 2%, although the US was flat in the year. Europe was also flat, with "difficulties" in Eastern Europe and Travel Retail highlighted.

In the fourth quarter, sales rose by 3%. The three-month performance echoed the third quarter, once the effect of a later Chinese New Year had been factored out.

“Our full year results are solid, delivering improving sales and profit from recurring operations in line with guidance," said CEO Alexandre Ricard. "Our strategy has remained consistent and is delivering results.

"For FY15/16, despite a challenging and volatile macroeconomic environment, we aim to continue gradually improving our business performance."

The battle continues for Pernod Ricard in the US and China - Analysis

To read the company's official statement, click here.

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