Pernod Ricard has posted strong sales in its FY21 results that have exceeded its FY19 figures with momentum anticipated “to continue in FY22” owing to “a very dynamic Q1.”
The French drinks group’s sales for FY21 totalled €8,824m, with organic growth of 9.7% with reported uplift of 4.5% due to the US dollar and emerging market currency depreciation vs. the Euro.
Sales grew in all regions with growth in the Americas up 14% with the combined growth of the USA, Canada and South America offsetting sales declines across travel retail.
Asia and the rest of the world markets saw a sales lift of 11% with very strong growth mainly driven by China, Korea and Turkey, and to a lesser extent India. Europe saw a lift of 4% with a dynamic rebound with the UK, Germany and Eastern Europe offsetting declines in Spain, Ireland and travel retail.
Category growth was led by the drinks firm’s strategic international brands which saw a sales upturn of 11% primarily driven by Martell in China and Jameson in the USA.
Pernod Ricard’s local brands were up 7%, driven by recovery of Seagram’s Indian whiskies, Kalhua, Passport and Ramazzotti, while its speciality brands saw a sales spike of 28% owing greatly to the continued very strong growth of Lillet, Aberlour, Malfy, American whiskeys, Avion and Redbreast.
Within Pernod Ricard’s strategic wines remit, the growth of brands such as Campo Viejo offset declines seen from Jacob’s Creek and Kenwood.
“The business rebounded very strongly during FY21 to exceed FY19 levels. We expect this good sales momentum to continue in FY22 with, in particular, a very dynamic Q1,” said Pernod Ricard chairman and CEO Alexandre Ricard.
Ricard took the opportunity to extend praise to “the exceptional commitment of our teams during this difficult time” and offer his support “to those who have been or continue to be impacted by this pandemic” and revealed that the company has plans to “stay the strategic course” by “accelerating our digital transformation and our ambitious sustainability and responsibility roadmap.”
“Thanks to our solid fundamentals, our teams and our brand portfolio, we are emerging from this crisis stronger,” Ricard added.
Pernod Ricard recently posted a return to organic sales growth in its Q3 results and predicted its anticipated profit growth in FY21 to be near the 10% mark.