• Full-year net profits jump 43% to EUR1.25bn (US$1.39bn)
  • Stripping out FY15's Absolut impairment charge, net profits were down 2%
  • Net sales in 12 months to end of June inch up 1% to EUR8.68bn
  • Operating profits lift 2% to EUR2.28bn
CEO Alexandre Ricard described fiscal-2016 as "solid and encouraging"

CEO Alexandre Ricard described fiscal-2016 as "solid and encouraging"

Pernod Ricard has forecast a low single-digit lift in profits for the next fiscal year, as the company reported steady sales in fiscal-2016.

The Jameson owner said today that sales in the 12 months to the end of June were up 1% in reported terms to EUR8.68bn (US$9.67bn). Organically, the top line rose 2%. Sales performance was driven by the US and Spain, while home market France suffered a "technical decline" due to shipment adjustments in conjunction with moves towards back-office sharing between Pernod and Ricard, the company said.

Meanwhile, net profits for the year reached a "historic high", up 43% to EUR1.25bn. However, the firm was cycling a EUR404m impairment charge in FY15 for the Absolut brand. Stripping out one-offs, this year's net profits dipped by 2%.

Will "slow but steady" win the race for Pernod Ricard in the US? - Analysis

Of the firm's brands, Jameson, Ballantine's, Perrier-Jouet and its Indian whiskies delivered strong performances, while Chivas and Absolut experienced "difficulties". 

"FY16 was a solid and encouraging year, delivering profit from recurring operations in line with guidance while maintaining investment and implementing significant initiatives to deliver our medium term strategy and objectives," said CEO Alexandre Ricard. "For full-year FY17, in a contrasted environment, we expect to continue improving our business performance year-on-year vs FY16, supporting priority markets, brands and innovations and focusing on operational excellence."

Looking forward, Ricard said guidance for FY17 is organic operating profits growth between 2% and 4%.

Pernod Ricard's share price was up 2.24% at 1:53pm CEST.

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

For Pernod Ricard's full-year performance by brand and by region, click here