Pernod Ricard sales rise by 20% in Q3

French firm Pernod Ricard saw sales increase by 20% in the third quarter of fiscal 2022, boosted by double-digit growth across all regions.

For the first nine months of fiscal 2022, Absolut owner Pernod Ricard reported organic growth of 18% to €8.4 billion (US$8.8bn). Sales for the third quarter reached €2.44bn (US$2.57bn).

In February, Pernod Ricard registered organic net sales growth of 17% for the first half of fiscal 2022.

Alexandre Ricard, chairman and CEO, said: “Our Q3 was very strong and continues the broad-based performance we enjoyed in the first half, with all our regions and must-win markets showing very strong growth.”

The company highlighted a strong performance in its “must-win” markets of the US, India, China and travel retail.

For the nine-month period, sales in the US rose by 13%, enhanced by phasing, while India increased by 19%. China saw sales grow by 12%, led by a ‘softer’ Chinese New Year as a result of the pandemic. Sales in the travel retail channel climbed by 33%.

Europe recorded ‘excellent growth’ (up 20%) with some deceleration in March as a result of the Ukraine-Russia war.

The Asia and the rest-of-the-world region saw sales rise by 16%. The Americas recorded a sales increase of 17%, with 43% growth in Central and South America.

Brand performance

The company’s strategic international brands experienced a sales jump of 20%, led by Jameson Irish whiskey, Martell Cognac, Absolut vodka, and Scotch brand Chivas Regal, Ballantine’s and The Glenlivet.

The ‘speciality brands’ arm saw sales climb by 28%, boosted by US whiskeys, gin brands Malfy and Monkey 47, Avión Tequila, Lillet aperitif, Redbreast whiskey and Del Maguey mezcal.

Local brands rose by 14%, driven by Indian whiskies Blender’s Pride and Royal Stag, and blended Scotch Passport.

Looking ahead to the full year, Pernod Ricard expects ‘strong diversified sales momentum’ across all its regions led by the rebound of the on-trade, as well as resilience in the off-trade and recovery in travel retail.

“The global environment remains volatile with an increasingly challenging and inflationary context,” said Ricard.

“We expect a softer Q4 impacted by Covid disruptions in China, phasing normalisation in the US and [the] conflict in Ukraine.”

The CEO said the company will increase investments to boost growth momentum. The firm expects organic profit from recurring operations to increase by 17% for the full year.