Paris. French drinks group Pernod Ricard reported that sales for the first 9 months of FY22 totalled €8.4bn, with organic growth of +18%, with strong price/mix
The company reported dynamic growth in the so-called must-win domestic markets, with USA at +13%, enhanced by inventory phasing; India maintaining strong growth (+19%) and China (+12%) following a softer Chinese New Year impacted by Covid and a high comparison basis.
The company also saw excellent growth in Europe with some deceleration in March particularly due to the impact of conflict in Ukraine The so-called Rest of World (ROW) also saw very strong growth in LATAM, Africa-Middle East and Asia, notably Korea and Japan performing well.
Travel Retail was up at +33% with increasing passenger traffic outside of China.
By category, strategic international brands led growth up +20% (Q3 +22%), driven by Jameson, Martell, Chivas Regal, Absolut, Ballantine’s and The Glenlivet. Strategic local brands, up +14% (Q3 +15%), also delivered notably strong growth in Q3 with Blender’s Pride, Royal Stag and Passport leading that. Speciality brands were up +28% (Q3 +45%), with very dynamic performance across the portfolio notably US Whiskeys, Malfy, Monkey 47, Avion, Lillet, Redbreast and Del Maguey.
Strategic Wines were down -3% (Q3 +3%) and reduced by New Zealand’s lower harvest.
Sales for the third quarter of FY22 totalled €2,45bn, with organic growth of +20% and reported growth of +25%.
Chairman and CEO Alexandre Ricard said: “Our Q3 was very strong and continues the broad-based performance we enjoyed in the first half, with all our regions and must-win markets showing very strong growth. The global environment remains volatile with an increasingly challenging and inflationary context. We expect a softer Q4 impacted by Covid disruptions in China, phasing normalization in the US and conflict in Ukraine.
“Overall, we expect for FY22 a strong diversified sales momentum across the regions due to on-trade rebound, off-trade resilience and a continuing recovery in travel retail. We are increasing investments to fuel growth momentum.”
The company is providing full-year guidance for FY22 of an organic growth in profit from recurring operations of around +17% with some operating margin expansion.
