FDBusiness.com

Pernod Ricard, the world’s second ranked wines and spirits group, has reported a 1% rise in full year revenue to €8.682 billion, with organic sales growth of 2%, driven chiefly by its businesses in the US and Spain. Profit from recurring operations (PRO) was up 2% to €2.277 billion, with organic growth of 2%.

Revenue was helped by strong performances by Jameson Irish whiskey, Ballantine’s Scotch whisky and Perrier-Jouët champagne but sales declined 4% for both the Pernod Ricard’s Chivas Regal Scotch whisky and Absolut vodka brands. The Jameson brand grew organic sales by 16% and Perrier-Jouët by 9%.

Pernod Ricard plans to reduce costs by €400 million by its 2020 financial year with €100 million of the savings reinvested in advertising and promotions.

“FY16 was a solid and encouraging year, delivering Profit from Recurring Operations in line with guidance while maintaining investment and implementing significant initiatives to deliver our medium-term strategy and objectives,” comments Alexandre Ricard, chairman and chief executive of Pernod Ricard. “For full year FY17, in a contrasted environment, we expect to continue improving our business performance year-on-year versus FY16, supporting priority markets, brands and innovations and focusing on operational excellence. As a consequence, our guidance for FY17 is organic growth in Profit from Recurring Operations between +2% and +4%.”