Pernod Ricard Up 12% In Fiscal First Half, Including U.S. Growth Of 5%

Pernod Ricard saw sales rise 12% on an organic basis to €7.1 billion ($7.6b) in its fiscal first half ended in December on a 3% volume increase, as the company touted “broad-based” growth across its global footprint. Profit from recurring operations also grew 12% organically to €2.4 billion ($2.6b).

In the U.S., Pernod said it saw “solid growth in a normalizing market.” U.S. sales were up 5% for the six-month period, as the company noted “underlying spirits value depletions of +3% with continued dynamism in premiumization trends.” The Jameson and Jefferson’s whiskey brands were both up by high single digits in terms of value depletions, while Malibu, Kahlua, and Beefeater grew by low to mid single digits. Favorable shipment phasing also helped boost the results for the half-year. Pernod added that it’s continuing to make rapid gains in the RTD market, and that following price hikes last fall, more price increases are on the way in the second half through June.

According to Impact Databank, Jameson’s U.S. volume depletions for calendar 2022 came in up 4.4% to 4.26 million cases, including 215,000 cases for flavor extension Jameson Orange. Additionally, Jameson’s premixed cocktails got off to a strong start, reaching 176,000 cases in a partial year on the market. Absolut and Malibu cocktails likewise continued to shine, topping 400,000 and 360,000 cases for the year respectively, although the brands’ core vodka and rum offerings declined. Jefferson’s, up 66% to approach the 300,000-case mark, also provided momentum.

Pernod noted that it has upweighted its advertising spend in the U.S. and Europe, placing €1 billion ($1.1b) in A&P investments in the first half, with its A&P to net sales ratio up by 224 basis points in the U.S. in the six-month period. That outlay manifested in campaigns like Absolut’s “Born to Mix” and Jameson’s “Widen the Circle.” Yesterday, Pernod also announced a new St. Patrick’s Day push for Jameson featuring actress Regina Hall.

“Our first half performance was very strong, marked by broad-based and diversified growth across all regions and categories,” said Pernod Ricard chairman and CEO Alexandre Ricard. “In addition, particularly strong pricing dynamic illustrates the attractiveness of our portfolio of premium brands and enabled us to sustain margins in an inflationary context. I expect this dynamic growth to continue through FY23 albeit in a normalizing environment.”—Daniel Marsteller

Tagged : Absolut, Beefeater, Jameson, Jefferson's, Kahlua, Malibu, Pernod Ricard

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