Pernod Ricard sees consistent growth driven by Asia in third quarter
Alcoholic drinks giant Pernod Ricard, the maker of Absolut Vodka and Jameson Whiskey and other famous brands, reported earnings for its third quarter of the year last week, demonstrating on-going strength in a number of key markets. Particularly strong, the company said, were its strategic brands division and travel retail business – both of which outperformed other segments. Additionally, despite strong performance from other regions (Russia, particularly) Asia is still driving growth.
Pernod Ricard’s share price has appreciated by 10% so far this year
Source: Yahoo Finance
Pernod Ricard said sales rose by 2.5% from a very strong comparable quarter last year. This helps to bring sales growth over the first nine months of the year to 6.3%, year on year. For the quarter, that translates into sales of $8.02 billion. Pernod Ricard saw growth in all major regions, but it was the east that stood out as a major contributor to success.
The company said that the Americas grew by 3% and Europe grew by 1% - Asia and the rest of the world, however, soared by as much as 12%. All of these figures are reported year on year. As we’re hearing from a number of other luxury brands, China is powering these positive results, and in Pernod Ricard’s case, the country has massively overshot other regions. In China, sales rose by 21% against the year ago-quarter. India wasn’t far behind, showing 19% growth over the same period.
Speaking to the strategic implications of these results, Pernod Ricard’s chairman and CEO, Alexandre Ricard, said: “Growth was very strong and diversified in the first nine months of FY19, responding to our long-term investment strategy. For full year FY19, in an environment that remains uncertain, we aim to continue dynamic and diversified growth across our regions and brands. We expect organic growth in Profit from Recurring Operations of [about] +8%. We will continue to roll out our strategic plan ‘Transform & Accelerate’, focused on investing for sustainable and profitable long-term growth.”
Dominion holds Pernod Ricard in its Global Trends Luxury Fund.
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