Drinks giant Pernod Ricard has reported a dip in global sales for the year to June, but its key brands in the UK convenience channel remain steady. The company, whose portfolio includes Jameson, Absolut, Chivas Regal and Ballantine’s, saw total sales fall 3% organically to €10.96bn, with tough trading in China, the US and travel retail dragging down results.
In the UK, Pernod Ricard maintained market share, with strong performances from Jameson and Chivas Regal helping offset wider European declines. Ready-to-drink products were a bright spot, growing 7% across the group’s portfolio, reflecting the ongoing popularity of the RTD category.
The company’s operating profit dipped slightly, but it still managed €1.13bn in free cash flow – up 18% on last year – thanks to tight cost control and better stock management. A dividend of €4.70 per share has been proposed.
Managing Director Alexandre Ricard said the business was preparing for a “transition year”, with growth expected to pick up in the second half. Investment in advertising and promotions will remain high, with a continued focus on making brands more desirable and relevant to today’s shoppers.
For UK convenience retailers, the results signal continued support for key brands and formats, particularly RTDs and premium spirits. Pernod Ricard hopes its focus on execution and innovation will drive further growth opportunities in the months ahead with Halloween, Christmas and New Year fast approaching.
