Pernod Ricard realises strong organic growth of 9.1 percent

Pernod Ricard realised sales of EUR 6,443 million, excluding tax and duties, for the 2006/2007 financial year ended 30 June 2007, which is a year-on-year increase of 6.2 percent.

This performance, says Pernod Ricard, comprised a strong 9.1 percent organic growth, a -2.8 percent negative foreign exchange effect, primarily due to the loss in value of the U.S. dollar, and a +0.2 percent group structure effect.

The group’s 15 strategic brands registered single digit growth (+9 percent) in volume and double digit growth (+13 percent) in value. This was in line with the group’s premiumisation strategy, as they call it at Pernod Ricard.

Over the full financial year, the spirits business and the wine business increased by +11.0 percent and +1.3 percent, respectively. Spirits continued to grow strongly in the 2nd half-year with a 9.4 percent sales increase while wine stepped up its growth to +4.5 percent.

Pernod Ricard, which has its global business split into three geographic regions, says that all regions contributed to annual growth. In Asia, Martell and Ballantine’s were the two main contributors. Especially China witnessed outstanding growth by Martell and by the whole whisky portfolio in excess of 10 percent (Chivas Regal, Ballantine’s and Royal Salute).

Pernod Ricard admitted that Thailand still remains a difficult market, like Australia and New Zealand. Although Australia and neighbouring New Zealand grew strongly, according to Pernod Ricard, business was adversely affected by the decline of value in wine sales.

In Europe, the business environment remained favourable in most countries: Germany, Russia, Greece, Ireland and Poland. Italy and the UK stabilised, despite the wine brand Jacob’s Creek being adversely affected by continuing strong competition in the United Kingdom.

Commenting on last year’s performance, Patrick Ricard, CEO of the Group, said: “2006/2007 was another year of very strong growth for Pernod Ricard which witnessed progress by all strategic brands. The great success of our premium brands and our rapid growth in emerging countries were the two principal drivers of this performance and should ensure continued vigorous growth for the year in progress”.