Pernod Ricard Sees Solid U.S. Growth, As China’s Slowdown ContinuesApril 21, 2016
Pernod Ricard reported organic net sales growth of 3% to €6.8 billion ($7.7b) in the nine months through March, representing the group’s first three quarters of its fiscal year. Gains were driven by strong growth in the Americas and particularly the U.S., where net sales were up 7% organically year-to-date, bolstered by premiumization trends. U.S. progress was driven by brands such as Jameson, which posted solid double-digit growth, as well as The Glenlivet (+11%) and Martell (+23%). The group’s Avión and Altos Tequilas also demonstrated a double-digit performance, while Malibu managed to eke out a 2% gain. Absolut, however, continued to lose ground in the U.S., slipping 2% over the nine-month period.
Pernod Ricard’s U.S. gains helped to offset losses in China, where net sales fell 10%, due in part to ongoing softness of the market’s Scotch business. In Europe (+1%), results were mixed, with sales in France down 6% and Spain up 8%, with the latter boosted by positive performances by Beefeater and Seagram’s gins. Meanwhile, sales were particularly strong in emerging markets such as India (+14%), as well as Africa and the Middle East (+16%), where the group’s Jameson, Martell and Scotch whisky portfolio enjoyed robust growth.
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