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Pernod Ricard Sees Improvement In U.S. And China In Third Quarter

April 23, 2015

Pernod Ricard posted an organic sales rise of 7% to €1.9 billion ($2b) for its third quarter ended in March, contributing to an overall 2% increase to €6.5 billion ($7b) over the first nine months of its fiscal year. The French drinks giant benefited from improved performances in the U.S. and Asia during the third quarter.

Pernod’s U.S. sales rose 2% over the past three months, although they’re still down 1% in its fiscal year-to-date. Solid U.S. growth from Jameson (+15%), Malibu (+2%), The Glenlivet (+8%), Martell (+34%) and Avión (+36%) has been offset by the continuing softness of Absolut (-5%) so far in Pernod’s fiscal year. The company noted that value progress across the U.S. spirits market thus far in 2015 has been driven both by higher volume—up 3.3% in Nielsen channels during the last three months, compared with a 1.1% increase over the last nine months—as well as ongoing premiumization trends.

Elsewhere, Pernod’s Asia/Rest of World business is up 4% to €2.7 billion ($2.9b) year-to-date, with the group noting gradual improvement in China. Pernod’s year-to-date sales in China are still down 3%, but it saw a stable performance during Chinese New Year, with Martell accelerating to 13% growth in the third quarter, partially negating a continuing slump in the whisky segment. Pernod’s Europe unit was flat at €2.1 billion ($2.3b) for the first nine months of the year, while its Americas division rose 3% to €1.7 billion ($1.8b).

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