Pernod Ricard reports 10% increase in net sales for fiscal year 2022/23

FRANCE – Pernod Ricard, the owner of Absolut vodka, has reported a 10% organic net sales growth to €12.1 billion (US$13.16bn) despite a volatile environment.

The group reported a profit of €2.26 billion for its 2022-2023 fiscal year after benefiting from favorable foreign exchange rates.

According to regions, the Americas had a 2%, rise in sales growth, showcasing a dynamic growth in LATAM led by Mexico and low-single-digit growth in North America with stable net sales in the USA and underlying value depletions of 2%.

In Asia where the net sales jumped by 17%, India, Travel Retail recovery, China, and Turkey were the biggest contributors to the growth.

The solid performance in Japan, and South Korea as well as a dynamic rebound in Southeast Asia, were attributed to the growth too.

Europe region reported an 8% revenue rise from strong resilience and pricing with growth led by Spain, Germany and a rebound in Travel Retail.

“Pernod Ricard once again delivered a very strong full-year performance, achieving double-digit broad-based growth in sales and earnings despite a volatile environment,” chief executive Alexandre Ricard said in a statement.

“The relevance of our growth strategy, the desirability of our brands, and the unwavering commitment and agility of our teams enabled us to gain share in most markets and strengthen pricing.”

In the United States, a high comparison basis would also lead to a sales decline in the first quarter, but with a positive outlook for the full year, the company said.

“There is an economic slowdown in China, (and) difficulties in the property market … we are seeing some caution from wholesalers in China,” Ricard told Reuters by phone.

“China’s fundamentals however remain very solid”, Ricard added, saying he was confident about the group’s ability to continue implementing price increases in the country.

Building on the strong performance for the fiscal year 2022/23, Pernod Ricard said it was “confidently” reiterating its mid-term financial goals for fiscal 2023 to fiscal 2025, aiming for the upper end of a 4% to 7% net sales growth range and a 50-60 basis points increase in operating margin.

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