FDBusiness.com

Pernod Ricard has reported an 8% rise in full year sales to €8.558 billion with organic sales growth of 2% for 2014/15 as the French spirits and wine group increased its share in most of its key markets. Full year profit from recurring operations rose by 9% and 2% organically to €2.238 billion.

Due to improving sales in China, Pernod Ricard’s Asia-Rest of the World region returned to growth during the year and Americas grew by 2% although the US was flat. The market in Europe was stable with a return to growth in Spain of 2% but difficulties remain in Eastern Europe and Travel Retail.

In terms of product categories, sales growth was driven by whiskies, with continued strong performances from the Jameson,The Glenlivet and Ballantine’s brands, and also the champagne brands Mumm and Perrier-Jouët, which both registered high single digit growth. Martell cognac returned to growth during the year but the Absolut vodka brand was impacted by a challenging US market.

Indeed, reported group share of net profit was down15%, due to an €404 million impairment charge on Absolut but would have been up by 25% excluding the impairment charge.

Alexandre Ricard, chairman and chief executive of Pernod Ricard, comments: “Our full year results are solid, delivering improving sales and profit from recurring operations in line with guidance. Our strategy has remained consistent and is delivering results.”

He adds: “For FY15/16, despite a challenging and volatile macroeconomic environment, we aim to continue gradually improving our business performance. We will continue to support priority brands and innovations while focusing on operational excellence.”