Pernod Ricard reported net profit fell 13% in fiscal 2020 as Covid-19 took its toll. Organic sales for fiscal 2020, ended June 30, declined 9.5% (-8%, reported). Sales in the Americas eased 6% despite showing “good resilience” in the U.S. and slight growth in Canada which was offset by double-digit declines in Latin America and Travel Retail.
The pandemic hit strategic international brands hard, resulting in a 10% decline despite broad-based growth in the first half, driven mainly by Martell, Chivas REgal, Absolute and Ballantine’s.
Despite implementation of the Covid-19 crisis management plan, fourth quarter sales plunged 32.7% organically, 37.9% reported. Off-premise sales were strong than anticipated in the U.S. and Europe.
“The Group has proven very resilient through FY20 and demonstrated its agility and ability to keep its supply chains operational, control costs and manage cash,” said Alexandre Ricard, chairman/CEO.
“For FY21, Pernod Ricard expects continued uncertainty and volatility, in particular relating to sanitary conditions and their impact on social gatherings, as well as challenging economic conditions. We anticipate a prolonged downturn in Travel Retail but resilience of the Off-trade in the USA and Europe and sequential improvement in China, India and the On-trade globally.
“We will stay the strategic course and accelerate our digital transformation while maintaining strict discipline, with clear, purpose-based investment decisions. We will harness our agility to adjust fast to capture new opportunities. Thanks to our solid fundamentals, our teams and our brand portfolio, I am confident that Pernod Ricard will emerge from this crisis stronger,” he said.