• Submitted by: manso
• Business and Economy
• 05 / 06 / 2011

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Confirmation of guidance for organic growth in profit from recurring operations close to +7% for the 2010/11 financial year.

PARIS--(BUSINESS WIRE)-- Press release - Paris, 5 May 2011. The Pernod Ricard (Paris:RI.pa - News) Board of Directors, meeting on 4 May 2011 and chaired by Patrick Ricard, reviewed the Group’s sales for the third quarter 2010/11 and confirmed its targets for the full 2010/11 and 2011/12 financial years.

Over the first nine months of the 2010/11 financial year (1 July 2010 to 31 March 2011) consolidated sales (excluding tax and duties) totalled € 5,902 million, an increase of 11% compared to € 5,326 million for the same period in the previous year. This was due to:

    * organic growth of 7%, in line with the 1st half of the financial year,
    * a 7% positive foreign exchange effect, primarily due to the appreciation of the US Dollar,
    * a 3% negative group structure impact, primarily due to the disposal of certain Scandinavian, Spanish and New Zealand assets.

During the period, sales grew by +16%* in emerging markets** and +2%* in mature markets.

Consolidated sales for the third quarter amounted to € 1,620 million, an increase of 5% compared to the 3rd quarter 2009/10, resulting from 5% organic growth, a positive 3% foreign exchange effect and a negative 2% group structure effect. This performance was due to continued sustained growth of our strategic brands. Organic growth was 15% in emerging markets** and sales were stable* in mature markets.

For the first nine months of the 2010/11 financial year

    * the 14 strategic spirit and champagne brands - Top 14 (59% of sales) - grew 7% in volume and 11%* in value, due to a price/mix effect that remained very favourable. Twelve out of these 14 brands reported growth*, including 5 posting double-digit growth: Royal Salute (+26%*), Martell (+25%*), Jameson (+22%*), Perrier-Jouët (+21%*) and The Glenlivet (+15%*). Such a performance testifies to Jameson and Martell’s continued success in the US and Asia, respectively, and also to the rebound of our Scotch whisky and Champagne brands.

    * the 4 Priority Premium Wine brands (5% of Group sales) grew +1%* in value, with stable volume.

    * the 18 key local spirits brands (17% of Group sales) were consistent with the trend noted in the 1st half of the financial year, growing +5% in volume and +2%* in value.

Conclusion and outlook

The improving business trend was confirmed in the third quarter 2010/11, with over the first nine months of the financial

Source: http://finance.yahoo.com/news/Pernod-Ricard-Good-3rd-bw-3353224035.html