FRANCE: China, France blackspots fail to hamper Pernod Ricard in H1

By | 14 February 2013

  • Half-year net profits rise by 5% to EUR858m (US$1.15bn)
  • Sales in six months to end of December increase by 6% to EUR4.91bn
  • Operating profits from recurring operations climb by 6% to EUR1.46bn
  • Re-states full-year target of 6% operating profits growth
Pernod Ricard restated its full-year profits guidance

Pernod Ricard restated its full-year profits guidance

Pernod Ricard has hailed a "good performance" in its H1, despite a "less buoyant environment" than the previous year.

The company said today (14 February) that net profits for the six months to the end of December came in 5% up at EUR858m (US$1.15bn). Sales in the half-year rose by 6% to EUR4.91bn, with operating profits increasing by 6% to EUR1.46bn.

The sales performance builds on Pernod's figures in Q1, when group sales were up by 5%.

While Q2 sales delivered organic growth of 5% to EUR2.70bn, a spate of pre-buying in France in the previous fiscal year and this year's timing of the Chinese New Year pulled reported growth back to 3% for the three-month period.

In Jauary last year, France introduced a 14% increase in excise tax on spirits.

The company declared itself satisfied with the "continued favourable price/mix" of its 14 priority brands, highlighting strong performances by Martell Cognac and Jameson Irish whiskey in the half-year. Ricard suffered most in the period, with sales value and volumes each slumping by 34%.

Looking to its full year, to the end of June, Pernod confirmed its target of 6% growth in operating profits.

Pernod's share price opened up this morning, rising by 3.1% to EUR97.00 at 1054 CET.

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

For just-drinks' in-depth look at Pernod's performance by region and brand, click here.

Expert analysis

Pernod Ricard SA (RI) - Financial and Strategic SWOT Analysis Review

Pernod Ricard SA (Pernod Ricard) is one of the leading producers and distributors of wines and spirits in the world. The company’s product portfolio comprises a wide range of whiskies, anise drinks, liqueurs, cognacs and brandies, white spirit, rums, bitters and wines. The company distributes its products under the brands, namely, ABSOLUT Vodka, Jacob’s Creek, Ballantine’s, Ricard, Chivas Regal, Malibu, Stolichnaya, Havana Club, Jameson, Beefeater, Kahlua, Martell, Montana, Mumm, The Glenlivet and Perrier-Jouet. The company principally operates in the regions of North America, Europe and Asia Pacific. Its products are distributed in around 70 countries across the world.

Sectors: Company results, Spirits, Wine

Companies: Pernod, Ricard, Martell, Jameson

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