Pernod upbeat as sales stabilise
Pernod Ricard says an improved performance in Western Europe has contributed to an impressive set of annual results.
The company – whose brands include Absolut vodka, Havana Club rum and Jacob’s Creek wine – said global sales were up 7%.
In Europe, excluding Pernod’s home country of France, sales were stable, following a decline the previous year. In western Europe, there was a 2% decline, but the company said this was primarily due to a 33% fall in Greece and a 5% reverse in Spain.
Globally, the best performing brands were Absolut, Chivas, Jameson, Havana Club, Martell, Royal Salute and The Glenlivet.
Wine sales were more problematic, although the company said the growth of Campo Viejo and Graffigna offset the moderate decline of Jacob’s Creek and Brancott Estate. But a new value strategy for wine brands meant that, after advertising and promotional costs were factored in, the category is now more profitable for Pernod.
Chief executive Pierre Pringuet said: “Our remarkable performance over the 2010-11 financial year demonstrated the relevance of our strategy and of our decentralised model.
“We will continue to grow, by capitalising on the strength of our portfolio of brands, the quality of our distribution network and the powerful leverage of emerging markets.”
Pernod posted an underlying 8% rise in profit from recurring operations to €1.9 billion (£1.7 billion).
