Press releases
30/10/2007 : 2007/08 1st quarter net sales: € 1,557 million
- Excellent start to the year: +11.6% organic growth
- Growth was driven by the 15 strategic brands (+ 9% in volume and +16%* in value)
- Strong sales growth in emerging countries**: +30%*
Press release - Paris, 30 October 2007 –
Pernod Ricard consolidated net sales (excluding duties and taxes) for the 2007/08 1st quarter (1 July to 30 September 2007) increased by +6.9% to € 1,557 million, compared to € 1,457 million in the 2006/07 1st quarter. Organic growth was +11.6%, with foreign exchange and group structure impacts of -1.9% and -2.4%, respectively.
Over the full 2007/08 financial year, the Group structure effect is estimated at a negative of around € 110 million on sales, and a negative of around € 10 million on operating profit from ordinary activities. In addition, the foreign exchange effect on operating profit from ordinary activities may be estimated between a negative € 60 to € 70 million at current exchange rates.
The spirits business recorded growth of +13.4%*, due to good performance by all geographic regions. The wines business improved by +3.3%*.
The development of our luxury brands remains one of the leading growth drivers (premium brands +23 %***). In total, the growth by all 15 strategic brands reached +9% in volume and +16%* in value. Nine of them recorded double-digit growth rates in value*: Martell (+39%), Jameson (+24%), Ballantine’s (+22%), Havana Club (+22%), Chivas Regal (+19%), Mumm (+19%), Malibu (+13%), The Glenlivet (+13%) and Jacob’s Creek (+10%).
Other Group spirits brands registered growth overall, in particular with the success of premium and ultra premium brands (Aberlour and Royal Salute) and standard premium brands (Ararat, Something Special, Wyborowa and Olmeca) and this, in spite of difficulties encountered by 100 Pipers (Thailand), Montilla (Brazil) and Hiram Walker Liqueurs (US).
The wines business excluding champagne posted growth, focusing on the fast-growing premium brand portfolio and featuring a decline in secondary brands.
All geographic regions contributed to organic growth:
• Asia / Rest of World: € 498 million (+12.4%, being organic growth +13%)
• Again, China showed great strength, posting net sales organic growth of +30%, in particular due to Martell and Ballantine’s superior qualities, and this, in spite of slower growth observed in the whisky category.
• India also recorded very strong growth due to its Indian whisky portfolio, including Royal Stag, Imperial Blue and Blenders Pride, and to the success of imported whisky brands, especially Chivas Regal and Ballantine’s.
• Starting from a lower sales level, most other markets also posted strong double-digit growth: Taiwan, Malaysia, Indonesia, Vietnam, whereas Thailand slowed down its decline.
• South Africa, where Jameson continued to make its breakthrough, registered further strong growth.
• Asian Duty Free was also dynamic with Chivas Regal, Ballantine’s and Martell.
• The Pacific Region (Australia and New Zealand) declined following strong price increases, which especially affected wine brands.
* Organic growth
** Country with a GNP/capita < USD 10,000
*** Brands of an equal or superior quality to Chivas Regal 12 yo and Martell VS.
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• Americas: € 393 million (-3.1%, organic growth +11%)
• North America (organic growth: +7.1%)
Jameson, Malibu, The Glenlivet and Wild Turkey continued to expand rapidly in the US. Chivas Regal sales increased slightly, whereas Martell and Mumm declined following the price increases. Kahlúa and Beefeater sales decreased again.
The wine and champagne portfolio grew strongly (Perrier-Jouët, Mumm Napa, Jacob’s Creek, Montana, Campo Viejo).
Growth remained strong over the quarter in Canada and Mexico.
• Central and South America (organic growth: +34.1%)
Central and South America experienced outstanding growth, primarily due to Chivas Regal (Venezuela), Ballantine’s (Brazil, Chile) and Havana Club (Chile, Cuba).
• Europe: € 508 million (+10.9%, being organic growth +12%)
Europe recorded a sharp acceleration, especially for the 15 strategic brands whose sales increased by +16%*. Sales growth was enhanced by favourable comparison bases.
Sales increased in most European countries; Western European countries experienced the strongest growth overall, whereas Central and Eastern Europe, notably Russia and Poland, developed rapidly.
• France: € 157 million (organic growth +5%)
1st quarter sales held up well in France, with dynamic sales by most whisky brands, in particular premium brands (Chivas Regal, Aberlour, The Glenlivet), partly due to strong promotional activities. Mumm gained market shares and benefited from price increases in the previous financial year and a favourable mix effect (vintage and rosé). Aniseed product sales declined, due to bad weather in the summer and in spite of a marked recovery in September.
“First quarter performance was excellent and again illustrated the success of our premiumisation strategy and development in emerging countries. These very good results enable the confirmation, in current market conditions and on a like-for-like basis*, of guidance of strong growth in sales and operating profit from ordinary activities for Pernod Ricard in 2007/08”, Patrick Ricard specified.
A guidance figure for organic growth in operating profit from ordinary activities will be released at the Annual General Meeting on 7 November
* Organic growth
** Change and Group structure
Download the appendices (pdf)
Shareholders’ agenda:
Annual General Meeting - Wednesday 7 November 2007
Download the slides and photos on the “Photolibrary” page of the “News” section.
Contacts Pernod Ricard
Francisco de la VEGA/ Communication VP Tel: +33 (0)1 41 00 40 96
Denis FIEVET/ Financial Communication & Investor Relations VP Tel: +33 (0)1 41 00 41 71
Florence TARON/ Press Relations Manager Tel: +33 (0)1 41 00 40 88
