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FRANCE: Pernod FY sales leap, Allied showing mixed

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Pernod Ricard has reported an expected boost to full-year sales from its integration of Allied Domecq but the performance of former Allied brands remains mixed.

The French drinks giant today (27 July) posted a 68% jump in sales to EUR6.06bn (US$7.7bn) for the year to 30 June. Stripping out contributions from the ex-Allied business, Pernod saw sales rise 4.3% on an organic basis.

Pernod's original stable of premium spirits brands, including Chivas Regal Scotch whisky and Martell Cognac, again enjoyed rising sales.

The newcomers to the portfolio, however, suffered mixed fortunes. Stolichnaya vodka enjoyed sales growth of 16%, while New Zealand wine brand Montana saw sales rise 4%. However, Ballantine's Scotch whisky, Beefeater gin and Kahlua liqueur all saw sales slide due to destocking.

Pernod said Asia and the Americas accounted for over half of group sales with "strong growth" in China, Venezuela and Brazil. The company said it had seen some "recovery" in Japan, while sales fell in Thailand after last October's tax increase.

The company saw some stability in its wine business in Australia after seeing sales side in recent months. Sales of Jacob's Creek rose 7% but that performance was offset by a sharp fall in "low-margin" wine sales, including bag-in-box.

Sales in the US more than doubled after the Allied deal and were up 4% on an organic basis, buoyed by sales of Jameson and The Glenlivet.

The integration of the Allied business also gave a shot in the arm to Pernod's business in Europe. Sales were up over 51% and rose 0.8% on an organic basis over the year.

European economies have provided tough conditions for many in the drinks industry and Pernod was not alone. Despite seeing "good progress" in Russia, Greece, Ireland and Scandinavia, Pernod reported "a difficult year" in Germany and Spain.

Pernod chairman and CEO Patrick Ricard said: "These results demonstrate the excellence of Pernod Ricard's organisational model. The remarkable work achieved by our employees throughout this period and our outstanding results to date give me absolute confidence in the growth prospects for the group in the coming months."


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