The French drinks group, Pernod Ricard SA, has reported sales of €740m for the first quarter of 2003, down 38% from €1.19 billion in the first quarter of 2002. The company attributed the decline to the sale of non-core operations since the first quarter of 2002.
Sales from continuing core activities rose by 11% from €644.3m to €712.6m, well ahead of analysts’ forecasts of around €667m. Among the key factors behind the growth in continuing activities, Pernod said, was a strong recovery from key liquor brands, Chivas Regal and Martell.
Sales of the company’s two flagship spirits brands had been adversely affected by overstocking problems. First-quarter sales volumes for Chivas were up by 27% while Martell volumes in the first three months of 2003 rose by 26%.
Pernod Ricard also said that the depreciation in the Euro had decreased revenues by €70m. However, CEO Patrick Ricard said the company had not suffered from anti-French sentiment being felt in the US over France’s stance towards the Iraq conflict. The company said the US had produced good like-for-like growth in the US in the first quarter, though actual sales had fallen from €178.4m to €158m.
