Pernod Ricard's H1 sales grow by 12%

By James Bayley

Published: 16 February, 2023

Pernod Ricard, the world’s second-largest wine and spirits seller has announced a 12% increase in sales for H1 FY23.

In monetary terms, sales reached €7,116m and grew 12% organically (19% reported), with a favourable FX impact of €355m linked mainly to the strength of the US Dollar vs. Euro.

Organic sales growth was evenly spread across all main regions including the Americas which saw a 7% growth driven notably by the USA with favourable phasing, Brazil and Canada.

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Not far behind was Europe with a 6% increase YOY, thanks in large part, to Western Europe and travel retail.

However, the most significant region of growth was in Asia-RoW. According to Pernod's figures sales grew by 18%, largely driven by India, Turkey, travel retail and South East Asian recovery.

There is growing confidence that sales can further increase in this region, especially in China following the lifting of Covid restrictions.

Alexandre Ricard, CEO of Pernod Ricard said, “Our first half performance was very strong, marked by broad-based and diversified growth across all regions and categories. In addition, particularly strong pricing dynamic illustrates the attractiveness of our portfolio of premium brands and enabled us to sustain margins in an inflationary context.”

With regard to categories, all spirit segments reported double-digit growth, including International Brands (+13%), most notably with the Scotch portfolio, Jameson and Absolut.

Strategic Local Brands were also up by 13%, driven by the growth of Seagram’s Indian whiskies and Seagram’s Gin.

Following this trend was Specialty Brands (+14%), courtesy of the continued strong development of Lillet, Italicus, Malfy, Redbreast, Aberlour and Altos.

Meanwhile, Strategic Wines were down 2% mostly due to softness in the UK market according to the report.

Ricard added, “We will continue to invest behind our brands, our group-wide transformation and S&R strategy, deliver operational efficiencies and prepare for exciting future growth opportunities.

“I expect this dynamic growth to continue through FY23 albeit in a normalising environment, demonstrating the strength of our strategy and the agility, dedication and exceptional engagement of our teams around the world.”

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