Pernod nine-month sales up despite Q3 decline

French firm Pernod Ricard saw organic sales increase by 8% in the first nine months of fiscal 2023, despite a 2% drop in the third quarter.

For the nine months to 31 March 2023, Jameson owner Pernod Ricard’s sales hit €9.5 billion (US$10.5bn). However, organic sales for the third quarter (Q3) fell by 2% to €2.39bn (US$2.64bn).

In February, the French firm registered organic net sales growth of 19% for the first half of fiscal 2023.

Alexandre Ricard, chairman and chief executive officer, Pernod Ricard, said: “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.”

For the nine-month period, sales in the US dipped by 1%, with organic growth in the Americas driven by Latin America.

China saw sales drop by 5% despite a ‘good’ post-Chinese New Year season. However, sales of Martell Cognac in January and February were impacted by the ‘soft’ festive season. In May, the group warned there would be ‘portfolio-wide’ price increases.

Sales in the travel retail channel climbed by a third (33%), thanks to the ‘gradual resumption’ of travel in China.

Organic sales in Europe grew by 6%, led by Spain, Germany and travel retail.

Meanwhile in Asia and the rest-of-the-world region, organic sales rose by 12%, driven by India, Turkey and travel retail. The company also reported a ‘solid’ performance in Japan, Thailand and South Korea.

Brand performance

The company’s ‘strategic international brands’ segment was boosted by its Scotch portfolio, alongside Jameson Irish whiskey and Absolut Vodka.

‘Very dynamic growth’ of 11% was seen in its ‘strategic local brands’, driven by Seagram’s Indian whiskies, Seagram’s gin, and coffee liqueur Kahlúa.

Lillet apéritif, Aberlour whisky, Altos Tequila, Malfy gin and Redbreast Irish whiskey contributed to 10% growth for the company’s ‘speciality brands’ segment.

“While the global environment remains volatile and as markets normalise, we are confident in delivering a strong performance for the full year in FY23, with very strong sales expected in our fourth quarter,” said Ricard.

“Our full-year guidance for FY23 is for organic growth in profit from recurring operations of circa 10%, with some operating margin expansion.”

This week, consumers have called for a boycott of all Pernod Ricard brands following the company’s decision to continue exports to Russia.