Pernod Ricard posts ‘very strong’ H1 results

Jameson owner Pernod Ricard has reported organic sales growth of 19% in the first half of fiscal 2023, with double-digit gains across all spirits segments.

In the company’s half year (H1) financial results report released today (16 February), Pernod Ricard revealed that sales totalled €7.117 billion (US$8.57bn), boosted by a favourable US dollar exchange rate against the Euro.

Net sales grew by 20% on a reported basis.

Alexandre Ricard, chairman and chief executive officer, said: “Our first half performance was very strong, marked by broad-based and diversified growth across all regions and categories.

“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.”

Growth by region

The French firm’s organic sales growth was broad-based across all regions, with 7% upswing across the Americas driven by the US, Brazil and Canada.

Growth across Asia was driven by India and Turkey, as well as recovery in South East Asia and the firm’s travel retail segment.

The company says it has a ‘confident outlook’ for China, following the lifting of Covid-19 restrictions.

A strong performance in Western Europe and travel retail aided the company’s 6% growth in Europe.

Category and brand performance

Pernod Ricard’s strategic international brands, which includes Jameson and Absolut, witnessed a 13% rise, with both brands boasting growth of 16% and 19% respectively.

The firm’s strategic local brands also saw 13% growth, boosted by Seagram’s Indian whiskies and Seagram’s Gin.

The company’s speciality brands, such as Italicus, Aberlour and Redbreast, saw a 14% boost, while the strategic wines segment fell by 2%.

Chivas Brothers

Chivas Brothers, the Pernod Ricard business dedicated entirely to Scotch whisky, announced an organic net sales increase of 23% compared to H1 2022.

The subsidiary credits its strategic focus on portfolio elevation and premiumisation for its growth, along with the strength of its global footprint.

Its key strategic brands Chivas Regal, Ballantine’s, Royal Salute and The Glenlivet each experienced double-digit growth, with increases of 34%, 17%, 37% and 12% respectively.

Consistent with recent years, a strong performance in Asian and Latin American markets has continued, with growth in Korea (59%) Japan (53%) and Taiwan (37%), while Brazil, Colombia and Mexico saw increases of 40%, 30% and 21%.

In European markets, Spain rose by 17%, and Poland increased by 7%.

North America saw a 6% increase.

The business has continued to invest in the elevation of its Prestige portfolio, which saw a 28% rise in growth. Specifically, Ballantine’s Prestige range grew by 81% owing to increased demand across Asian markets and global travel retail, while The Glenlivet’s top-line performance was driven by its Prestige expressions.

Chivas Brothers’ chairman and CEO, Jean-Etienne Gourgues, commented: “These positive results reflect the impact of our long-term portfolio elevation and premiumisation strategy. It’s a testament to the resilience of Scotch, it’s bright future and our continued drive to open up the category to new audiences.”

“Dynamic growth to continue”

The firm said its H1 results had ‘reinforced confidence’ in it delivering a strong performance for full-year 23 (FY23), driven by its global footprint and the attractiveness of its diversified premium portfolio.

Ricard added: “We will continue to invest behind our brands, our group-wide transformation and S&R strategy, deliver operational efficiencies and prepare for exciting future growth opportunities.

“I expect this dynamic growth to continue through FY23 albeit in a normalising environment, demonstrating the strength of our strategy and the agility, dedication and exceptional engagement of our teams around the world.”

Last month, Johnnie Walker owner Diageo released its H1 results for FY23, which saw double-digit growth boosted by the firm’s premium-plus brands.