Advertise with fastmoving.co.za
 
 

The spirit’s group first-quarter sales are up despite slowing growth in the US.
The spirit’s group first-quarter sales are up despite slowing growth in the US.

Pernod Ricard sales up 10% on demand from China and India

LIQUOR NEWS

By Dominique Vidalon - Oct 18th, 14:09

Spirits group Pernod Ricard posted a stronger-than-expected 10.4% rise in first-quarter underlying sales, helped by higher demand in China and India, and despite slower growth in its main market in the US. 

Pernod, the world’s second-biggest spirits group behind Britain’s Diageo, however, cautioned that sales growth would moderate in the full year, notably for its Martell cognac in Asia.

It also warned of a slightly negative foreign exchange impact on its recurring operating profit.

For the first quarter ended September 30, Pernod reported sales of £2.387bn, a like-for-like rise of 10.4% that beat analysts’ estimates for 7.4% like-for-like growth in an Inquiry Financial poll for Reuters.

Pernod said it benefited from strong demand in China and from a low comparison in India a year ago, where it has faced setbacks that include a ban on liquor outlets. The group, whose brands include Absolut vodka and Jameson whiskey, said sales in India rose 34% in the quarter, having previously risen 14% in its past financial year.

In China, sales rose 17% last year and leapt to 27% in the first quarter, led by strong demand for Martell across all price segments and by double-digit growth in Chivas whisky.

Pernod said it would benefit in the first half from the earlier timing of the Chinese new year, but growth would then moderate as Martell would come back in line with its medium-term, high single-digit volume growth target.

In the US, where sales were up 2% in the quarter, Jameson whiskey continued its double-digit growth but the Absolut vodka brand was still in decline. Pernod tied the overall slower growth in the US to various shipment phases but said the underlying trend remained broadly in line with the market, which was growing by 4%.

Pernod said that despite an uncertain geopolitical and monetary environment, it was keeping its forecast for a 5% to 7% organic rise in full-year profit from recurring operations after last year’s 6.3% growth.
Business Live 

Related News

SA loses R6-billion + in revenue to illicit alcohol trade
15/11/2018 - 14:03
The South African economy suffered a fiscal loss of R6.4-billion (USD$492-million) in 2017 due to illicit alcohol activities, which generates an annual revenue of R12.9bn and goes unregulated.

Key insights into the global olive oil market
14/11/2018 - 12:27
According to the report "World - Olive Oil (Virgin) - Market Analysis, Forecast, Size, Trends and Insights", recently published by IndexBox, in 2017, global virgin olive oil imports totalled 1.4M tonnes, a -7.0% decrease against the previous year.

Threat of US menthol cigarette ban knocks BAT down 11%
12/11/2018 - 13:39
British American Tobacco’s (BAT) share price plunged 11% to R555, wiping R176bn off its market capitalisation, on a report the US government is considering banning menthol cigarettes.

Global orange consumption on the rise
31/10/2018 - 10:31
According to the report “World - Oranges - Market Analysis, Forecast, Size, Trends and Insights”, recently published by IndexBox, the global orange consumption reached 75M tonnes in 2017, going up by 2% against the previous year.

PepsiCo plans to use 25% recycled plastic content by 2025
29/10/2018 - 08:58
PepsiCo has announced that it plans to use 25% recycled content in its plastic packaging by 2025 as part of its sustainability vision.