Pernod Ricard reports 8% sales growth in first nine months

Pernod Ricard, the world's second-largest spirits producer, reported an 8% organic sales increase for the first nine months of its 2022/23 fiscal year, reaching €9.5 billion. The growth was broadly based across regions and categories, supported by an average price increase of 9%.

The company experienced a 2% decline in sales during the third quarter. This was attributed partly to a strong comparison base from the previous year and phasing effects in key markets like the United States and China. While the US market showed slight overall growth, the third quarter was softer. China faced a slow start to the year, although activity rebounded in March.

Markets such as India continued strong performance with 15% growth, while travel retail saw a significant 33% rebound due to recovering travel. Asia & Rest of World grew 12%, Europe 6%, and the Americas 2%. International strategic brands, including Scotch whiskies and Jameson, contributed with 7% growth.

Pernod Ricard anticipates a strong fourth quarter and projects an organic growth of approximately 10% in its recurring operating income for the full fiscal year 2022/23. The company is prioritizing revenue growth initiatives and operational efficiencies amidst global volatility. This includes continued investment in marketing and infrastructure, alongside share buyback programs and dividend payments.