Pernod Ricard Gets Profit Boost From U.S., Emerging Markets
February 11 2016 - 1:05AM
Dow Jones News
By Jason Chow
PARIS--French liquor group Pernod Ricard SA (RI.FR) said
Thursday its first-half profit for the fiscal 2016 year rose 9% as
strong sales in the U.S. and emerging markets along with a low euro
boosted the bottom line.
The owner of Absolut vodka and Jameson whisky said profit for
the six-month period ending Dec. 31, rose to 909 million euros
($1.03 billion), up from EUR834 million in year-earlier period.
The company's profit from recurring operations, the measuring
stick that analysts and the company often use, rose 6% during the
half-year period to EUR1.44 billion from EUR1.36 billion in the
same period in fiscal 2015.
Meanwhile, second-quarter revenue for the world's no. 2 drinks
conglomerate after Diageo PLC (DEO) rose 6% as strong sales of
Jameson whisky and Perrier-Jouet champagne made up for declining
sales of Absolut and Chivas Regal scotch whiskey. Organic revenue
growth, which strips out the favorable effect of the low euro, was
at 4% for the quarter, the company said.
Organic sales growth for Jameson was 11% while Perrier-Jouët
posted 10% organic growth during the quarter. Absolut declined 3%
and Chivas Regal slipped 2%.
Sales in its Americas region, dominated by the U.S. market, rose
4% in the quarter, while its Asia/Rest of World regions increased
14%. Those two areas made up for a 2% decline in Pernod's home
region of Europe.
However, China remained weak. The country, which was formerly a
major driver of growth, saw its sales decline 2% over the six-month
period. However, when adjusting for the fact that Chinese New Year
came earlier this year, sales in China actually slid 8%. Sales in
China have declined steadily since a government anti-corruption
campaign took bite in 2013 and discouraged spending on luxuries
such as expensive liquor.
Despite the weaker China, the company confirmed its forecast for
1% to 3% growth in profit from its recurring operations.
-Write to Jason Chow at jason.chow@wsj
(END) Dow Jones Newswires
February 11, 2016 01:50 ET (06:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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