Pernod-Ricard Sales Rose 13% in Year

Pernod-Ricard reports net sales for fiscal 2023 rose 13% (10% organically).  Net profit rose 12%.

The company said growth was broad-based across all regions with strong pricing execution.  The Americas saw 2% growth; it was described as "dynamic" in Latin America , led by Mexico, and low single-digit growth in North America with stable net sales in the U.S. and underlying value depletions up 2%. Declining sales are expected in the first quarter because of high comparables, but the company said it has a positive outlook for the year. A

Asia-RoW was up 17%, and Europe was up 8%.

All spirits categories delivered strong growth:
• Strategic International Brands: +11%, strong momentum led by Scotch, Martell, Jameson
and Absolut.
• Strategic Local Brands: +10%, very dynamic growth notably led by Seagram’s Indian whiskies and Olmeca.
• Specialty Brands: +8%, continued development led by Lillet, Aberlour, Malfy and the Spot Range.
• Strategic Wines: (2)%, overall soft performance mainly driven by Jacob’s Creek and Campo Viejo in UK and North America.

Looking to the future, the company said that based on its "very strong FY23 performance, we confidently reiterate our FY23 to Y25 mid-term financial framework of aiming for the upper end of +4% to +7% Net Sales growth and +50/+60bps operating margin."

Alexandre Ricard, chairman/CEO, said:
“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. 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. Our transformational journey continues to accelerate
through the deployment of tech and data-powered organizational, sales and marketing initiatives. We are making solid progress on our sustainability and responsibility roadmap to 2030. While the environment in FY24 remains challenging, I am confident in Pernod Ricard’s ability to deliver on its medium-term objectives.”