Emerging markets boost Pernod Ricard

26th July 2007, Comments 0 comments

PARIS, July 26, 2007 (AFP) - Heavy demand for wines and spirits in emerging markets, notably in Asia, is putting pep into profits at Pernod Ricard, the French drinks group said on Thursday.

PARIS, July 26, 2007 (AFP) - Heavy demand for wines and spirits in emerging markets, notably in Asia, is putting pep into profits at Pernod Ricard, the French drinks group said on Thursday.

Pernod Ricard reported that sales rose by 6.2 percent in its last financial year and that growth of current net profit for 2006-2007 would slightly exceed the target of 20 percent.

The group had grown in all areas of the world but sales in the region it described as Asia-rest of the world had surged by 9.7 percent.

Chief executive Patrick Ricard said: "2006-2007 was another year of very strong growth in which all of the strategic brands grew.

"The big success of our premium marks and our rapid growth in emerging markets were the two main drivers of this performance and should ensure continued dynamic growth in the current year."

The wine and spirits giant said that in the year to June sales had risen by 6.2 percent to 6.443 billion euros (8.9 billion dollars) despite the fall of the dollar against the euro.

Sales in Asia-rest of the world totalled 1.884 billion euros and would soon exceed sales in Europe which had grown by 4.5 percent to 2.091 billion euros. Sales in the Americas had risen by 5.4 percent to 1.766 billion euros.

Current net profit for the year to June would show growth slightly above the initial target of 20 percent on a basis of constant exchange rates, it said.

Currency variations, mainly the fall of the dollar, had crimped sales by 2.8 percent but internal growth of the business had increased them by 9.1 percent.

Pernod Ricard is a global force in the drinks market following its acquisition of British group Allied Domecq.

The group said that its top leading branded drinks had all achieved growth and that the growth of sales volume of eight of them had exceeded 10 percent.


Copyright AFP

Subject: French news

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