Pernod Ricard Q1 boosted by strong sales in India and China

Pernod Ricard has made a strong start to its financial year, as its Q1 net sales rose 10.4% year-on-year to €2.39 billion, with the company performing particularly well in India and China.

Sales in the company’s Asia-Rest of the World division increased 23% to €1.08 billion, an increase of €169 million when compared to last year, and sales from the region accounted for 45.4% of the company’s overall sales.

Sales in the region were boosted by strong growth across all categories in China, with sales in the country increasing 27% as the Martell, Chivas, Absolut, The Glenlivet and Jacob’s Creek brands all performed strongly.

Sales in India grew 34%, thanks to “better market conditions” and growth across the company’s portfolio, while the division’s sales were also boosted by strong travel retail sales across the region.

However, the company’s sales continue to decline in The Republic of Korea, despite attempts to bolster its portfolio in the country through the release of innovative drinks.

Brands in Pernod Ricard’s Strategic International Brands division account for 65% of the company’s sales, and growth of the division acceleration rose 12%, with Martell, Scotch and Jameson performing strongly, though Absolut vodka declined slightly due to shipment phasing difficulties in the US.

Growth in the Americas increased modestly by 2%, with the division registering sales of €636 million as Martell and Jameson continued to experience growth in the US, while increased sales of Absolut in Canada returned the country to growth, with sales increasing 3%.

Pernod Ricard experienced stagnant growth in Europe however, as sales in France. Spain and Germany all fell flat, though the Strategic International Brands did experience double-digit growth in the UK.

Alexandre Ricard, chairman and CEO said: “We have had a particularly good start to the year, as expected.

“In an uncertain geopolitical and monetary environment, we confirm our FY19 guidance of organic growth in profit from recurring operations of between 5% and 7%.”