Pernod Ricard announces declining results for the first half of its 2023-2024 fiscal year, marked by an 11% drop in volume sales. Despite these challenges, the CEO remains confident for the future, anticipating a dynamic recovery in sales and maintaining the company’s medium-term objectives.
After a period of sustained growth, Pernod Ricard has come back down to earth. On Thursday February 15, the global spirits giant published its results for the first half, ending December, of its 2023-2024 financial year.
In the first six months of the 2023-2024 fiscal year, Pernod Ricard recorded an 11% drop in sales volumes. This decline is partly attributable to the price increases applied to its main international brands such as Absolut, Chivas, Havana Club, Martell and Perrier-Jouët, aimed at offsetting the impact of inflation on its costs and maintaining its margins.
However, this strategy resulted in a 3% drop in sales to 6.6 billion euros. Sales were also affected by negative currency effects, to the tune of 576 million euros.
The French group’s net profit contracted by 12% year-on-year to 1.26 billion euros, while operating income recurring also fell by 3% to 2.1 billion euros.
“We are in an expected phase of normalization,” said Alexandre Ricard, CEO of the French spirits leader, confident about the company’s prospects. “In three years, for example, the North American market has grown by almost 25%, twice as fast as it should have. After this post-Covid super-cycle, inflation is easing and we’re going to return to a classic pricing policy, the one we had before the crisis, with more targeted increases. In fact, the second half of the year should see a dynamic recovery in sales.”
Despite these results, which were in line with forecasts, investors reacted positively, with the company’s share price rising by 1.78%.
Key markets slow down
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Featured photo : © Pernod Ricard
