FRANCE: Pernod Ricard beats estimates with Q1 growth | Progresiv
Pernod Ricard has reported better-than-expected sales growth for its fiscal first quarter, continuing its recent run of improved results. The world’s second-largest spirits group said sales were up 9% to 2.2 billion euros, with organic sales growing by 3%, slightly outpacing analysts’ estimates. The group benefitted from the weakness of the euro, which drove up international sales. 
Sales in Europe grew by a solid 3%, but were offset by a 6% rise in the Americas, which was boosted by an 8% increase in the US. However, sales growth in the Asia-Rest of World unit slowed down to just 1%, as it registered a 9% drop in sales across China. The group said sales of its ‘Top 14’ brands were up 2%, driven by growth of Jameson and The Glenlivet. Its ‘18 Key Local Brands’ registered a 5% increase, helped by demand for Indian whiskies and Passport. And encouragingly, its ‘Priority Premium Wines’ bounced back with an 8% increase, mostly due to improved results in the UK and Australia.
CEO Alexandre Ricard said the results were “consistent with our scenario of continued gradual improvement in Sales in a contrasted environment. We are aiming for +1% to +3% organic growth in Profit from Recurring Operations for FY 2015/16”. Ricard also said the group will “continue to implement our long-term growth strategy, while increasing investments behind our priority brands and innovations and remaining very disciplined on costs and pricing.” (www.kamcity.com)
