Pernod Ricard liquor group grows strongly thanks to price increases
Spirits producer Pernod Ricard has benefited from higher prices and the weak euro in its first half of the fiscal year. Sales increased by 19 percent to 7.1 billion euros, as the supplier of brands such as Jameson, Absolut and Havana Club announced in Paris on Thursday. Under its own steam, i.e. excluding exchange rate effects and acquisitions and disposals of parts of the company, sales would have climbed by twelve percent, it said.
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Ten percentage points of growth came from price increases alone, it said. "I expect this dynamic growth to continue for the full year, albeit in a normalizing environment," said Group CEO Alexandre Ricard. He plans to continue to raise prices, although he also wants to increase spending on advertising.
Operating profit, adjusted for exceptional items, was 2.4 billion euros, up 21 percent. The price increases more than offset rising procurement costs, and the gross margin increased - although this was also offset by higher administrative costs. On balance, Pernod Ricard earned just under 1.8 billion euros, almost a third more than a year earlier. (dpa)
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