Despite difficulties in Asian travel retail, particularly in Korea, liquor supplier Pernod Ricard reports solid first-half 2015/2016 results totalling €5b ($5.7b) and organic growth of 3 per cent.
It says the results represent a continued gradual improvement apart from difficulties for the Chivasbrand in the pernod Ricard Asia portfolio.
There was a negative mix driven by geography – growth in India vs. a decline in China. Overall in Asia, the company had 5 per cent growth (or 4 per cent, taking into account the changing dates of the Chinese New Year) with double-digit growth in India. However, China declined by 2 per cent (down 8 per cent adjusting for Chinese New Year).
“Our half-year results are solid, delivering a continued improvement in sales,” says chairman and CEO Alexandre Ricard. “Our strategy has remained consistent and is driving results, in particular in terms of innovation.”
He says the company plans to continue improving its performance and will continue to support priority markets, brands and innovations.
Pernod Ricard includes Cambodia, China, India, Indonesia, Malaysia, Sri Lanka, Thailand, The Philippines and Vietnam in its emerging markets, and lists its top 14 brands for organic growth as Absolut, Ballantine’s, Beefeater, Chivas Regal, Havana Club, Jameson, Kahlua, Malibu, Martell, Mumm, Perrier-Jouët, Ricard, Royal Salute and The Glenlivet.
Formed in 1975 by the merger of Ricard and Pernod, the company has a workforce of about 18,000 people. Its decentralised organisation has six brand companies and 80 market companies in each key market.