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Pernod Ricard results fail to sparkle

Published:  18 September, 2008

Paris-based Pernod Ricard has delivered a lacklustre set of financial results, with net profits up by just 1% to €840m (£666m).

Net sales for the year to 30 June 2008 rose by 2.3% to €6.6bn (£5.2bn).

But Pernod put a positive spin on the results, pointing to organic sales growth of 9% and a 13% increase in profit from continuing operations.

The company said sales growth was strong in all regions, particularly emerging markets, which saw 22% organic growth.

Pernod upped its spending on advertising and promotions by 12% during the period, to nearly €1.2m (£950,000), focused on its top 15 brands, premium brands and emerging countires.

In the Americas, Asia and the Rest of the World, organic profit growth was 18%, while in Europe (excluding France) the figure was a more modest 7%.

In France, Pernod said, growth reached 11%, "due in particular to the success of Mumm, Chivas Regal and Ballantine's".

For the current financial year, the company is expecting "low to mid-single digit" sales growth in the first quarter, followed by organic growth of about 8% in continuing operations.

It also predicted "a strong positive impact from Absolut vodka producer Vin & Sprit, which it bought earlier this year.

Chairman and chief executive Patrick Ricard said: "In spite of a more difficult general environment, the strength of our portfolio and of our global commercial network, together with the expected success of the Absolut Vodka integration should enable us to continue the strong growth of our sales and profits."

PR's brands also include The Glenlivet Scotches, Jameson's Irish Whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlua and Malibu liquers, Perrier-Jouët champagnes, as well as Jacob's Creek and Montana wines.