Pernod Ricard sees 17% sales boost in H1
Absolut owner Pernod Ricard registered organic net sales growth of 17% for the first half of fiscal 2022, with brand share gains in most countries.
In the company’s financial results report, released today (10 February), Pernod Ricard revealed that organic sales totalled €5.95 billion (US$6.8bn).
On a reported basis, net sales grew by 20%. Free cash flow increased by 39%, reaching €1.3bn (US$1.4bn).
Alexandre Ricard, chairman and chief executive officer, said: “The execution of our ‘transform and accelerate’ strategy is delivering an excellent and broad-based performance in the first half, with brand share gains in most countries.”
Growth by region
In Europe, the group experienced its largest regional sales increase of 21%. Rebound growth, compared with the same period in 2021, was seen in Spain, France and travel retail, with ‘continued dynamism’ in Eastern Europe.
In Asia and the rest of the world, a 16% hike in sales was seen, driven by China, India and Turkey.
Meanwhile in the Americas, Pernod Ricard saw a sales growth of 14%, with positive results in the US, Brazil and in travel retail.
Category and brand performance
Pernod Ricard’s specialty brands, such as Lillet, Monkey 47 and Redbreast, saw a 21% boost. There was also a continued positive performance from American whiskeys.
The group’s strategic international brands saw a 19% rebound compared with 2021 levels, with all brands growing. Jameson, Martell, Absolut and Chivas Regal all experienced a double-digit sales rise.
Growth was also enjoyed by strategic local brands, which grew by 14%, driven by the recovery of Seagram’s Indian whiskies.
Expectations for 2022
The group is expecting continued on-trade rebound, off-trade resilience, and recovery in travel retail to drive strong sales across regions in the second half of the year.
Ricard added: “Despite the ongoing volatile environment, we expect for FY22 strong sales growth across regions. We will increase investments to fuel growth momentum.
“We remain focused on executing our strategy, progressing on our sustainability and responsibility journey, and accelerating our digital transformation.
“A successful mix of robust fundamentals, the dedication of our teams, and our portfolio of brands has yielded a very strong set of results and seen us through this crisis, emerging even stronger.”
Johnnie Walker owner Diageo also recently released its H1 results for FY22, reporting an organic net sales growth of 20%.