- Full-year sales to end of June climb 10% to EUR12.14bn [US$13.23bn]
- Fiscal Q4 +19%, eclipsing 7.6% nine-month sales increase
- Current financial year sees challenges in US
Pernod Ricard has topped the chart of listed beverage alcohol brand owners in the three months to the end of June as a near-20% leap in sales contributed to a +10% full financial year top-line performance.
The 19% sales increase for the fourth quarter of fiscal 2023 delivers on the group's forecast in April that the three-month period would see strong sales on a "favourable comparison basis". For the full year, all three reporting regions were up although in the 'Americas', the company warned of a dip in sales in the US during the current quarter, to the end of September, albeit because of a "high comparison basis".
Staying with regions, 'Asia/Rest of the World. was the standout with full-year sales increasing by 17% thanks to the recovering global travel retail channel alongside a "dynamic rebound" in South East Asia. The performance trumped those of the Americas [+2%] and Europe [+8%] as price increases boosted the France-based group's home region.
Brands-wise, Pernod Ricard's 'strategic international brands' stable delivered flat volumes in the 12 months as value sales were up 11%. Standouts came from blended Scotch brands Chivas Regal and Royal Salute as the former broke the 5m-case barrier for the first time in fiscal 2023. The group noted, however, that its Scotch portfolio benefited from double-digit pricing during the period.
Elsewhere, there were double-digit sales lifts for the likes of Absolut, Ballantine's, Beefeater, Jameson and Martell, although Champagne marks Mumm and Perrier-Jouët offered less impressive showings.
Compared to other publicly-listed brand owners across beer, spirits and wine, Pernod Ricard led the way in the three months to the end of June in sales growth terms: The +19% rate was markedly ahead of second-placed Molson Coors Beverage Co's +12.1%. In spirits, Campari Group came closest at +10.1%.
Compared to its main rival, the mood in Paris will be brighter than in London today, unlike this time a year ago: Diageo and Pernod Ricard have seen their respective sales growth rates perform in line for much of the last ten years, although the former enjoyed stronger showings in fiscal 2021 and 2022.
The tables have turned in the most recent financial year, however, when Diageo came in up 6.5%.
The stock market reaction to today's results appears to have been guided by the downbeat references to the current trading period: At midday CEST, the shares had dipped by almost 5% on yesterday's close.
Pernod Ricard has a current market capitalisation of EUR48.52bn, according to Yahoo Finance.
Just prior to today's announcement, the group confirmed changes to its governance and organisational structure late yesterday.
Pernod Ricard's official fiscal 2023 results announcement.
