Pernod Ricard, the wine and spirits company, has reported a 4% decline in UK sales in the year to 30 June, despite experiencing its strongest year of growth overall since 2007/2008.
Global sales for the company, which this morning named Danièle Ricard as its new chairman following the death of Patrick Ricard, grew 7% to Euro8.22bn, or 8% on an organic basis. Its top 14 brands experience a 10% rise in sales.
Profit from recurring operations grew 11% to Euro 2.11bn. Operating margins increased 25.7% to +75 bps and the net debt to EBITDA ratio was 3.8 at 30 June against 4.4 on year earlier.
Sales growth was led by emerging markets, where sales increased 17%. In more mature markets, growth was +2%, including +6% in the Americas and -1% in France.
Sales in Europe excluding France declined 2%, with “pronounced bipolarisation” between East and West.
“In Eastern Europe, sales growth noticeably accelerated to +16% (compared to +9% in 2010/11), while sales in Western Europe declined -1%, a similar decrease as in the previous year (-2%). This decline is primarily attributable to Spain (-4%), Italy (-13%), Greece (-13%) and the UK (-4%).”
Pierre Pringuet, chief executive, said: “Throughout the 2011/12 financial year, the group recognised its best growth rates since the 2008 crisis, be it for the top or bottom line. This is the result of a clear and constant strategy: substantial investments in our brands, innovation, premiumisation and geographic expansion.
“This performance also derives from a unique, decentralised organisation founded upon the motivation and the accountability of men and women, that Patrick Ricard bestowed upon us. Despite the economic uncertainty, we are confident in the Group’s ability to deliver solid growth this year as well.”
Pernod Ricard also confirmed this morning that Pierre Pringuet has been appointed vice chairman and will continue to act as chief executive. Alexandre Ricard is appointed deputy chief executive and chief operating officer.
