Pernod Ricard today declared 2011/12 its "best growth since 2007/08" in its annual report for its financial year ending 30 June 2012. The French drinks company saw its operating profits rise by a reported 11 per cent to €2,114 million while sales increased by 7 per cent to to €8,215 million. The group share of net profit reached €1,146 million, a 10 per cent increase for the second consecutive year.
The group also announed that Alexandre Ricard is to become both CEO and chairman of Pernod Ricard from January 2015, while he will take on the role of deputy CEO and COO with immediate effect. Pierre Pringuet, current CEO, will continue in the role until then. The new deputy chief executive is the nephew of the late Patrick Ricard, the group's chairman. Danièle Ricard will assume her late brother's role as chairman.
Sales growth for the year in Europe, excluding France, was 2 per cent, although Eastern Europe performed strongly with a 16 per cent jump. Western Europe declined 1 per cent, mostly due to sharp declines in Italy and Greece (13 per cent each) and a slowdown in Spain and the UK (4 per cent each). In France, sales dropped 1 per cent which the company attributed to due to a decrease in spirits consumption following the excise duty increase of 1 January 2012.
The report said Asia/Rest of World is still driving the group's growth, with a 15 per cent rise in sales, particularly in China, India, Vietnam, Taiwan and Travel Retail and Africa/Middle East showed "very strong" growth.
Pringuet commented, "This is the result of a clear and constant strategy: substantial investments in our brands, innovation, premiumisation and geographic expansion," adding, "Despite the economic uncertainty, we are confident in the Group's ability to deliver solid growth this year as well." (30 Aug)
© 2012 - ESM: European Supermarket
