Pernod Ricard’s Full-Year Sales Top $13 Billion
August 31, 2023Pernod Ricard has posted sales up 10% on an organic basis to €12.1 billion ($13.2b) for its fiscal year ended in June, with strong growth across its global footprint offsetting flat sales in the U.S. The company’s profit from recurring operations was also up strongly, rising 11% to €3.3 billion ($3.6b).
In the U.S., Pernod’s sales were stable over the past year, with underlying depletion value increasing 2%. The company said it saw good depletions value growth on Jameson, Kahlua, Malibu, Redbreast, Jefferson’s, Altos, and Del Maguey, with a modest decline on Absolut. Meanwhile, the RTD portfolio saw double-digit expansion, and Pernod said it achieved share gains in Irish and North American whiskey and single malts, as well as with Malibu rum and Kahlua liqueur.
Price increases also boosted performance in the U.S., which saw a high-single-digit effect of price hikes on sales. Pernod warned, however, that U.S. sales in the first quarter of its new fiscal year are expected to decline due to a tough year-over-year comparison, before rebounding to positive growth for the full year through next June.
As the company continues to refine its brand stable in the U.S., Pernod noted that it has invested over €1 billion ($1.1b) in the past year to “complement our portfolio in attractive categories in North America,” including with its increased investment in Sovereign Brands and acquisition plays for Codigo 1530 Tequila, Skrewball Peanut Butter Whiskey, and Ace Beverage RTDs.
Overall, Pernod’s Americas region saw 2% growth in the year through June, while Europe rose 8%, and Asia/Rest of World increased 17%. The company reiterated that it’s “aiming for the upper end of +4% to +7% net sales growth and +50/+60bps operating margin” through fiscal 2025.
“Pernod Ricard once again delivered a very strong full-year performance, achieving double-digit broad-based growth in sales and earnings despite a volatile environment,” said chairman and CEO Alexandre Ricard. “The relevance of our growth strategy, the desirability of our brands and the unwavering commitment and agility of our teams enabled us to gain share in most markets and strengthen pricing.”
Additionally, yesterday Pernod announced changes to its global executive team, which resulted in new appointments for current chairman and CEO of Pernod Ricard EMEA & LATAM Gilles Bogaert, who is being appointed EVP Global Markets, and Philippe Guettat, currently chairman and CEO of Pernod Ricard Asia, who is being appointed EVP Global Brands.
The changes follow the retirement of Christian Porta, managing director global business development, after a 35-year career with the company. Moving forward, Pernod says it will have a “delayered organization removing the regional entities covering EMEA/LATAM and Asia to ensure faster execution and decision making at every level of the organization.” —Daniel Marsteller
| Pernod Ricard USA—Key Spirits Brands | |||||
| Brand | Origin/Type | Total 2022 Depletions1 |
2023 YTD2 Percent Change In Control States |
||
|---|---|---|---|---|---|
| Jameson3 | Irish Whiskey | 4,241 | -1.1% | ||
| Absolut3 | Imported Vodka | 3,127 | -8.3% | ||
| Malibu3 | Imported Rum | 2,750 | -3.7% | ||
| Kahlúa | Imported Liqueur | 929 | -3.4% | ||
| The Glenlivet | Single Malt Scotch | 507 | -19.4% | ||
| Malibu RTDs | Premixed Cocktail | 419 | 15.8% | ||
| Beefeater | Imported Gin | 415 | -6.4% | ||
| Absolut RTDs | Premixed Cocktail | 405 | -4.9% | ||
| Olmeca Altos | Tequila | 307 | -3.7% | ||
| Chivas Regal | Blended Scotch | 239 | -26.9% | ||
| Martell | Cognac | 204 | -35.0% | ||
| Jefferson’s | American Whiskey | 177 | 11.8% | ||
| Jameson RTDs | Premixed Cocktail | 176 | 82.5% | ||
| Total Key Spirits Brands | 13,895 | -5.2% | |||
| 1 thousands of 9-liter cases. 2 year-to-date through June. 3 includes flavors, excludes RTDs Source: NABCA and IMPACT DATABANK © 2023 |
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Tagged : Absolut, Jameson, Pernod Ricard, The Glenlivet
