Q3 sales up 5% at Pernod Ricard

Pernod Ricard has posted a third quarter sales increase of 5%, thanks to strong growth in emerging markets and premium brands and a 2% recovery in more mature markets.

Third quarter sales amounted to €1,620 million, up 5% on the previous year, resulting from 5% organic growth, a positive 3% foreign exchange effect and a negative 2% group structure effect.

There was continued sustained growth of the firm¡¯s 14 strategic spirit and Champagne brands, while organic growth was 15% in emerging markets and stable in mature markets.

Overall strategic brands, which make up 59% of sales, grew 7% in volume and 11% in value ¡ª five of the 14 brands posted double-digit growth, including Royal Salute (+26%), Martell (+25%), Jameson (+22%), Perrier-Jouet (+21%), and the Glenlivet (+15%).

The four priority premium wine brands (5% of group sales) grew 1% in value, while volume remained flat.

European organic sales (excluding France) were flat for the first nine months, but declined 3% on a reported basis follwing the disposal of Spanish and Scandinavian assets.

Pierre Pringuet, Pernod Ricard chief executive, said: ¡°The third quarter 2010/11 confirmed the improved business trends since the start of the financial year and strengthens our confidence in our ability to meet our targets: organic growth in profit from recurring operations of close to +7% for the full 2010/11 financial year and net debt/EBITDA ratio close to 4 at the 30 June 2012 year-end¡±.