Alexandre Ricard, chairman and chief executive officer of French alcobev giant Pernod Ricard, highlighted the Absolut and Jameson-maker’s robust performance and said they are confidently steering Pernod Ricard through “the normalization of the spirits market, following two years of outstanding growth.”
Ricard said, “We achieved strong Gross Margin expansion on the back of substantial pricing actions, thanks to the power of our premium portfolio. With a diversified footprint spanning mature and emerging regions and a broad presence across spirits categories, we are able to weather volatility and continue to gain share in many markets.”
He added, “I am convinced that our sound strategy, together with the dedication, agility, and exceptional engagement of all our teams around the world, will enable us to deliver our ambitions.”
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H1 FY24 Sales totalled €6,590 million, in organic decline of -3% (-7% reported), with a negative FX impact of €(576)m mainly linked to the US dollar, Turkish lira, Chinese yuan and Argentinian peso, with broadly half of it offset by a positive perimeter impact of +€264m.
In China, the company saw softened consumer demand in a challenging macro environment, but also dynamism of international premium spirits notably strong growth of Absolut, Jameson, tequila and gin. Martell Noblige resilient, Premium and Super premium whiskies performance including Chivas Regal are in growth.
India is seeing strong market demand for spirits and acceleration in Q2 Net Sales against easing comparables. Strategic International Brands are in very strong growth, notably Jameson, Absolut and The Glenlivet. The company also saw Good growth on Seagram’s whiskies. Pernod Ricard sait it expects strong growth in H2.
Pernod Ricard recently signed a memorandum of understanding with the Maharashtra government to set up a malt spirit distillery in Nagpur. It will invest up to €200 million ( Rs1,794 crore) for this over the next decade.