Pernod Hit By Shipment Phasing In Q3, Predicts Strong Finale To Fiscal Year
April 27, 2023Pernod Ricard’s net sales increased 8% on an organic basis to €9.5 billion ($10.5b) in the nine months through March, despite a 2% decline to €2.4 billion ($2.6b) in the most recent quarter, affected by shipment phasing and tough comps against the prior year. The spirits giant noted that it expects a robust fourth quarter performance, with profit from recurring operations forecasted at 10% for its full fiscal year ending in June.
In the U.S., Pernod’s nine-month sales declined 1%, although depletion value is still in positive territory, showing growth of 2% over the same period. While shipment phasing and a high comparison base held it back in the third quarter, that situation is expected to reverse in the fourth quarter, with strong sales and additional price increases in the offing. With a couple rounds of price hikes already behind it, Pernod says the U.S. business is seeing a high-single-digit price impact across the portfolio, adding that leading brand Jameson continued its strong performance through the St. Patrick’s Day holiday.
Pernod Ricard North America chairman and CEO Ann Mukherjee recently detailed the situation in the U.S., where the company’s recent moves have included investing in whiskey both via a new $250 million distillery for Jefferson’s in Kentucky and the acquisition of a majority stake in Skrewball in the flavor segment. Meanwhile, offshoots of top brands—like Jameson Orange and Absolut Cans, both Impact “Hot Brands”—have been well received by consumers.
“Our very strong nine-month performance was broad-based and confirms the strength of our business, with resilient volumes, strong pricing, and continued dynamism in all our regions and spirits categories,” said chairman and CEO Alexandre Ricard. “While the global environment remains volatile and as markets normalize, we are confident in delivering a strong performance for the full year in FY23, with very strong sales expected in our fourth quarter.”
| Pernod Ricard—Key Spirits Brands in the U.S. (thousands of 9-liter case depletions) |
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| Brand | Origin/Type | 2021 | 2022 | Percent Change1 |
|
|---|---|---|---|---|---|
| Jameson2 | Irish Whiskey | 4,062 | 4,241 | 4.4% | |
| Absolut2 | Imported Vodka | 3,199 | 3,127 | -2.2% | |
| Malibu2 | Imported Rum | 2,982 | 2,750 | -7.8% | |
| Kahlúa | Imported Liqueur | 935 | 929 | -0.7% | |
| The Glenlivet | Single Malt Scotch | 527 | 507 | -3.9% | |
| Malibu RTDs | Pre-mixed Cocktail | 116 | 419 | 260.0% | |
| Beefeater | Imported Gin | 428 | 415 | -3.0% | |
| Absolut RTDs | Pre-mixed Cocktail | 308 | 405 | 31.5% | |
| Olmeca Altos | Tequila | 340 | 307 | -9.6% | |
| Chivas Regal | Blended Scotch | 257 | 239 | -7.2% | |
| Martell | Cognac | 230 | 204 | -11.1% | |
| Jefferson’s | Bourbon | 158 | 177 | 11.5% | |
| Jameson RTDs | Pre-mixed Cocktail | – | 176 | + | |
| Total Leading Spirits3 | 13,542 | 13,895 | 2.6% | ||
| 1 Based on unrounded data. 2 Includes flavors; excludes pre-mixed cocktails. 3 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2023 |
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