Published on Oct 19, 2023 at 7:30 a.m.
PARIS, October 19 (Reuters) – Pernod Ricard reported on Thursday a decline in its turnover in the first quarter of its 2023-2024 financial year, penalized by the decline in its sales in the United States and China, but said it expects growth in its annual revenues.
The turnover of the French wine and spirits group stood at 3.042 billion euros over the period, down 8% and 2% in internal data.
In China, sales fell by 8% in a “difficult” macroeconomic context with “moderate” consumer demand. They are also affected by an unfavorable basis of comparison after a record Mid-Autumn Festival last year.
In the United States, sales also fell by 8%, again due to an unfavorable basis of comparison which is added to an adjustment in inventory levels in a context of normalization of the spirits market.
Pernod Ricard warned at the end of August of a “more modest start” to the first quarter, after a better than expected 2022-2023 financial year, due to the slowdown in China and the United States.
“As expected, the first quarter is in slight decline, I nevertheless find it encouraging that the good performance of other markets largely offsets the decline in turnover in the United States and China this quarter,” indicates CEO Alexandre Ricard, quoted in a press release.
The group’s sales increased by 1% in India and Europe, were stable in the “travel retail” branch and fell by 10% in the America region with declines recorded in Canada, Brazil and Mexico.
For the entire financial year, the owner of Martell cognac, Mumm champagne and Absolut vodka claims to see favorable prospects in China and the United States and expects “strong” growth in India and in travel. retail”.
It is therefore counting on “diversified” turnover growth for its 2023-2024 financial year and reiterated its medium-term outlook, namely internal sales growth at the top of a range of between +4% and + 7%. (Written by Blandine Hénault, edited by Jean-Stéphane Brosse)
2023-10-19 05:30:00
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