Pernod Ricard Reports Strong First-Half Sales and Profit Growth

Pernod Ricard, the global spirits and wine company, reported strong performance for the first half of its fiscal year ended December 31, 2022. Organic sales rose by 12% to €7.1 billion, while reported sales increased by 19% mainly due to favorable currency exchange rates. The company's profit from recurring operations (PRO) also saw a 12% organic increase, reaching €2.4 billion.

The growth was broadly based across all geographical regions, with the Asia-Rest of World segment showing an 18% increase driven by markets like India and Turkey, as well as travel retail. While China experienced a softer second quarter due to COVID-19 restrictions, Pernod Ricard anticipates a recovery following the easing of these measures.

A significant pricing strategy contributed to a 10% increase in pricing across brands and geographies, helping to offset rising costs due to inflation. All major spirit categories, including strategic international and local brands, experienced double-digit growth. The wine segment saw a slight decline of 2%.

Looking ahead, Pernod Ricard expressed confidence in delivering a strong performance for the full fiscal year 2023, expecting continued dynamic sales growth in a normalizing environment. The company also confirmed plans for a new €300 million share buyback program, signaling its commitment to shareholder returns while continuing strategic investments.