FRANCE: Emerging markets slow, but Pernod Ricard sees FY sales, profits rise

A second-half slowdown in its emerging markets has failed to stop Pernod Ricard posting sales and profits growth in its fiscal full-year.

//i4.progressivedigitalmedia.com/1/pernodricardlogo2013.jpg

The company said earlier today (29 August) that net profits in the 12 months to the end of June were up by 3% year-on-year, hitting EUR1.21bn (US$1.62bn). Net sales for the year rose by 4% to EUR8.58bn, while operating profits increased by 6%, hitting EUR2.23bn.

Growth of 10% in the emerging regions was hampered by a poorer perfomance in the second half of the year, Pernod said, particularly in China. The country's economic performance is slowing, while the introduction late last year of anti-austentatious measures by the Government is hitting international spirit sales.

The US performed well, with sales climbing by 8%, although France saw sales fall by 7% year-on-year. Sales from Europe were split: Eastern Europe was up by 11%, with Russia leaping by 16%, although Western Europe fell by 3%, thanks primarily to a tough year in the Spanish market.

The numbers are broadly in line with the half-year results, released in February, that showed a 5% lift in net profits and a 6% rise in both net sales and operating profits.

For the fourth quarter of the fiscal year, net sales were flat, inching up by 1% to EUR1.93bn, as the disposal of several non-core European spirits brands to Arcus-Gruppen last year pulled back the performance. In organic terms, however, Q4 sales rose by 5%, with The Americas leading the way, delivering a 9% lift in sales.

“Despite a less buoyant environment than that of last year, we achieved our guidance,” said CEO Pierre Pringuet. “Our global and balanced exposure to emerging and mature markets will allow us to seize all opportunities. We therefore remain confident in our ability to pursue our growth.”

Pernod's shares opened up slightly this morning: At 0907 CEST, they were trading at EUR91.19, a rise of 0.5%.

For an in-depth review of Pernod's FY performance both regionally and by brand, click here.

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

---