Pernod Ricard reports U.S. sales were up 6% in the first quarter, tying growth in China and exceeding the growth of any other region. Pernod gave credit for the U.S. results to “innovation, enhanced by advance shipments.”
Pernod said its overall organic sales growth was up 4% “due to a favorable foreign exchange impact, mainly from the U.S. dollar.” All regions except Global Travel Retail reported sales growth; GTR was down 6% after a strong first fiscal quarter a year earlier, the company said.
On a global basis:
- Prices for strategic international brands was raised 2%, contributing to a 3% growth in sales for these key brands. The company noted Martell and Scotch had high comparables from a year earlier, but Jameson, Beefeater, Malibu and Havana Club all saw accelerated growth.
- Strategic local brands sales rose 2% after a 2% price increase. Growth was softer, Pernod said, because Seagram’s Indian whiskies had achieved high growth a year earlier.
- Strategic wines growth eased 2%. The modest decline was linked to continued implementation of a value strategy on Jacob’s Creek.
Alexandre Ricard, chairman/CEO, said the moderate growth was expected but said the company confirms its guidance for the full fiscal year of profit growth from recurring operations in the 5% to 7% range.