Pernod Ricard posted a net profit up 44% in the first half of the year to 1.39 billion euros.
The world’s number two spirits company Pernod Ricard has announced an increase in profit for the first half of the year. In the first six months of its 2021-2022 financial year, the group’s sales rose by 20% to 5.959 billion euros.
The group, which owns Martell cognac, Mumm champagne and Absolut vodka, said that sales growth would lead to an expansion of the operating margin, although this was moderate compared to the first half of the year due to increased investment.
Profit from current operations in the six months ended Dec. 31 reached 1.998 billion euros ($2.28 billion), an organic increase of 22 percent, ahead of analysts’ expectations for a 16.7 percent increase. As expected, sales growth slowed to 14% in the second quarter from 20% in the first quarter, when Pernod Ricard benefited from a low comparison base a year ago.
Sales increased in all regions, with a 23% increase in Europe, 17% in the Americas and 19% in Asia and the rest of the world. Sales in airports increased by 38% year-on-year at constant exchange rates and scope of consolidation, but remained 41% below their pre-pandemic level.
Among the group’s prospects, it wishes to continue implementing the Transform & Accelerate strategic plan, particularly on digital transformation, and wishes to accelerate the share buyback program, with approximately €250 million in additional funds (i.e., a total of approximately €750 million for the entire 2021/2022 fiscal year).
Alexandre Ricard, Chairman and CEO, said: “The implementation of our Transform & Accelerate strategy is delivering an excellent overall performance in the first half of the year, with market share gains for our brands in most countries and strong growth in all our Must-Win markets. (…) Despite a still volatile environment, we expect very good sales growth in all regions for fiscal year 2021/2022, with a continued rebound in On-Trade, resilience in Off-Trade and a gradual recovery in Travel Retail. We are increasing our investments to support the growth momentum.”
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Featured photo : © Pernod Ricard
