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Pernod Ricard Projects 16% Profit Jump As Business Accelerates

June 23, 2021

With business conditions continuing to improve across its global footprint, Pernod Ricard says it’s now expecting profit from recurring operations for its fiscal year ending this month to be up in the range of 16%, up from the previous marker of 10% set down in April.

“The pace of recovery is proving stronger than anticipated,” the company said in a statement this morning. “The off-trade continues to be resilient while on-trade demand is accelerating as restrictions are progressively lifted.” In the nine months through March, Pernod’s Americas unit saw sales climb 4% organically to just under €2 billion ($2.4b), including “robust mid-single digit growth” in the U.S., driven by the booming off-premise sector and its Glenlivet, Malibu, and Kahlúa brands, as well as its Tequila and American whiskey portfolios.

Overall, for the nine months ending in March, the drinks giant’s sales grew 1.7% organically to €6.94 billion ($8.37b), led by 6% growth in the U.S. and a 34% surge in China. On issuing the improved guidance today, Pernod said it expects profit this fiscal year to be broadly in line with that of 2019, “albeit with sales still impacted by restrictions in the on-trade and travel retail.”—Daniel Marsteller

Pernod Ricard USA—Key Brands
(thousands of 9-liter case depletions)
Brand Origin/Type 2019 2020 Percent
Change5
Spirits1
Jameson Irish Whiskey 3,723 3,580 -3.9%
Absolut2 Imported Vodka 3,415 3,161 -7.4%
Malibu3 Imported Rum 2,246 2,734 21.7%
Kahlúa3 Imported Liqueur 799 924 15.7%
The Glenlivet Single Malt Scotch 471 470 -0.4%
Beefeater Imported Gin 440 433 -1.6%
Altos Tequila 323 364 12.5%
Wine4
Mumm Napa California 348 402 15.6%
Jacob’s Creek Australia 462 397 -14.0%
Campo Viejo Spain 317 374 18.2%
Total Pernod Ricard 17,172 17,432 1.5%
1 Includes flavors.
Excludes Cans; includes Juice and Elyx.
Excludes pre-mixed cocktails.
4 Includes still and sparkling.
Source: IMPACT DATABANK © 2021
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