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Strong FY17 results boosts acceleration at Pernod

Published:  31 August, 2017

Pernod Ricard, the world number two in spirits, has forecasted accelerated net profits for the current financial year thanks to a strong performance in 2016/2017.

In its financial yearly results released this morning, the owner of Absolut and Mumm Champagne said it was confident it will outdo the 3.3% rise in profit from recurring operations to June 2017, with expectations of this to rise between 3% and 5% for the year to June 30, 2018.

Acceleration was largely due to a number of its ‘Strategic International Brands’ including Martell (+6%) and Absolut (+2%) which both saw a return to growth over the past year.

Eleven of the 13 strategic brands were in growth, with 9 out of the 13 improving their performance, Pernod said.

Profits increases by 13% in the year, to £1.28bn (€1.39bn), while the sales total for FY17 reached £8.3bn (€9bn) – believed to be a record high for the company.

Meanwhile, organic sales growth accelerated by 3.6% compared to FY16, bringing the distiller closer to its mid-term objective of +4% to +5%.

Reported Sales growth was +4%.

In a statement, Alexandre Ricard, chairman and CEO, said he is confident that the company will continue to improve its business performance, before setting FY18 organic growth in profit from recurring operations forecast between +3% and +5%.

Improvements were driven mainly by driven by two of its biggest markets, the USA, where there was a higher demand for whisky, and a return to growth in China.