Pernod Ricard reports that group sales worldwide grew +4% in the first quarter of FY2017 [+3% when restated for French technical impact*] with the travel retail division seeing improvements in the US and Korea, but struggling in other parts of Asia and in Europe.

 

According to Pernod Ricard travel retail witnessed an “improving trend in travel retail Americas” with a “return to growth [and] better performance from duty free across zone, product mix and pricing.”

 

However, the travel retail division admitted that it battled a ‘difficult environment’ in Asia for Q1 ‘impacted by tough commercial negotiations’. More positively the same division said that Korea duty free appeared to show improvement.

 

A sales decline for travel retail in Europe was apparently caused by weakness in Eastern Europe; something which the company has been battling for the last few years.

 

Group wide, For FY17, as indicated in September, Pernod Ricard expects good sales growth to continue in USA, India, Jameson and innovation. It also expects sales to improve vs FY16 in China, Absolut and Chivas.

 

There will be a ‘continued focus on the operational efficiency roadmap and priority brands and innovations’ and ‘continued deleveraging and strong cash flow generation’.

 

For FY17 the company is looking for organic growth in profit from recurring operations between +2% and +4%.

 

*Shipments brought forward from July to June2015 ahead of back-office mutualisation between Ricard and Pernod on 1 July 2015.