Pernod Ricard’s US and China operations offset -40% decline in TR

By Charlotte Turner |

Pernod Ricard reported sales of €8,824m/$10,467m for FY21, with organic growth of +9.7%, however, the global travel retail division saw a -40% decline, as passenger traffic volumes remained low.

 

The group’s reported sales growth was +4.5% due to a significant adverse FX impact resulting from USD and emerging market currency depreciation vs. Euro.

 

While the group reported ‘continued share gains, which significantly reinforced its leadership’ for the global travel retail division, in addition to sell-in growing in H2, it suffered from subdued passenger traffic.

 

There was evidence of positive pricing and strong mix, thanks to better resilience from the Martell and Royal Salute brands and continued momentum from offshore duty free islands, namely Hainan and Jeju.

 

‘OUTSTANDING ECOMMERCE GROWTH’

The group’s topline growth was driven by domestic markets in the USA (+16%) and China (+44%) reaching record sales above $2bn and €1bn respectively.

Market share gains were noted in most key markets, and Pernod Ricard highlighted that strong progress had been made in digital transformation and ‘outstanding e-commerce growth’ (+63%). Pernod Ricard also said it had been able to accelerate its sustainability roadmap.

 

Alexandre Ricard, Chairman and Chief Executive Officer commented. “The business rebounded very strongly during FY21 to exceed FY19 levels.

“We expect this good sales momentum to continue in FY22 with, in particular, a very dynamic Q1.

 

“I would like to take this opportunity to praise the exceptional commitment of our teams during this difficult time and express my support to those who have been or continue to be impacted by this pandemic.

 

“We will stay the strategic course, accelerating our digital transformation and our ambitious Sustainability & Responsibility roadmap. Thanks to our solid fundamentals, our teams and our brand portfolio, we are emerging from this crisis stronger.”

 

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