Pernod Ricard Expects Revenues FY Up 9%
Annual sales should grow by about 9%, with organic growth close to flat, a negative foreign exchange effect of around 2% and a strong positive Group structure effect due to the integration of Vin & Sprit.
20/07/09 Pernod Ricard has said in a trading update that the Group’s performance over the whole 2008/09 financial year, characterised by a difficult economic environment, proved highly satisfactory.
Annual sales should grow by about 9%, with organic growth close to flat, a negative foreign exchange effect of around 2% and a strong positive Group structure effect due to the integration of Vin & Sprit.
Following a strong increase over the first half-year, Pernod Ricard’s sales growth slowed down over the second half: this was due to the overall decline in consumption, as well as to destocking by wholesalers and distributors, which primarily occurred over the third quarter.
The fourth quarter sales trend improved, in line with our expectations, with negative organic growth* of about 3%. The major emerging markets (China, India) continued to grow strongly. The performance of other markets remained contrasting, with countries such as France, Australia, Sweden and Canada reporting growth and others such as Ireland, Italy, South Korea, and Japan continuing to experience difficult situations.
The announced results guidance for the 2008/09 financial year is confirmed:
• organic growth* in profit from recurring operations at the lower end of its guidance range of 3% to 5%, resulting from steady sales, combined with strictly controlled advertising and promotional expenditure and structure costs,
• growth in net profit from recurring operations - Group share slightly in excess of 10%, due to the significant contribution of Absolut and to an average cost of debt maintained below 5%.
