FDBusiness.com

Reflecting double digit growth in emerging markets and a strong performance in the US, French drinks group Pernod Ricard achieved 6% organic growth in profit from recurring operations to Eur2.23 billion, in line with guidance for its financial year 2012/2013 on net sales up 4% to Eur8.57 billion.

Pernod Ricard’s top 14 brands continued to drive growth with sustained value growth of 5%, helped by outstanding performances from Jameson and Martell and solid growth in white spirits.

Premiumisation and innovation remained the group’s growth drivers, as testified by a still highly favourable price/mix – up 5% for the top 14. Premium brands increased their share of sales from 73% to 75%.

The operating margin improved by 42 bps to record its largest expansion  in three years, due to: the combined effect of continued premiumisation and good control of resources.

Higher cash flow generation than in the previous year resulted in a Eur635 million decrease in net debt. The net debt/EBITDA ratio fell to 3.5 at the end of June 2013.

“Despite a less buoyant environment than that of last year, we achieved our guidance,” says Pierre Pringuet, vice chairman and chief executive of Pernod Ricard “Our global and balanced exposure to emerging and mature markets will allow us to seize all opportunities. We therefore remain confident in our ability to pursue our growth.”