Drinks giant Pernod Ricard has reported a “very strong sales recovery” in global travel retail, with sales climbing 33% for the nine months to 31 March. 

While total nine-month year-to-date sales hit €9,507m/US$10,505, representing 8% organic growth, sales for the Q3 2023 period stood at €2,391m/2,642, an organic and reported decline of 2%.

In its financial statement, Pernod Ricard said it was experiencing a “a persistently volatile environment and a normalising market”, while confirming confidence in delivering “a strong performance in FY23” with “very strong” fourth quarter sales ahead.

Within travel retail, a resumption of Chinese travel led to the “very strong” performance, with the business saying it is on track for profit recovery to pre-pandemic levels by year-end.

At present, net sales have reached around 80% of pre-pandemic levels. 

Across the channel, the sales recovery is driving the “very strong” development in the premium Scotch category, the company added.

Spirits driving sales growth

More broadly across the business, nine-month YTD growth is coming from across Pernod Ricard’s spirits portfolio.

The Strategic Wines division is the weakest performer, with organic sales slipping -2%. Softness is mostly coming from the UK market, the business noted.

Meanwhile Strategic International Brands saw continued momentum, with its 7% sales gains coming from the Scotch portfolio, Jameson and Absolut.

The Strategic Local Brands portfolio posted “very dynamic” 11% growth, driven by Seagram’s Indian whiskies, Seagram’s Gin, and Kahlua. 

Lillet, Aberlour, Altos, Malfy and Redbread all propelled the Specialty Brands unit to 10% gains.

By geographic footprint across the year-to-date, Asia-Rest of World posted 12% organic sales gains, led by India, travel retail and Turkey offsetting China.

While organic sales fell by 5% in China, Pernod Ricard notes a “very dynamic sell-out” at the end of Q3, with strong activity post-Lunar New Year. It is expecting “very strong sales” in Q4, with portfolio-wide price increase to take effect in May.

In Europe, sales climbed 6% driven by Spain, travel retail and Germany, while across the Americas, the LATAM region contributed to 2% gains. 

“Our very strong 9M performance was broad-based and confirms the strength of our business, with resilient volumes, strong pricing and continued dynamism in all our regions and spirits categories,” said Alexandre Ricard, Pernod Ricard Chairman and CEO.

“While the global environment remains volatile and as markets normalise, we are confident in delivering a strong performance for the full year in FY23, with very strong sales expected in our fourth quarter.

“Our full year guidance for FY23 is for organic growth in Profit from Recurring Operations of c. +10% with some Operating Margin expansion.”

Pernod Ricard previously said its H1 2023 sales were stronger than expected, with GTR sales up 36% year-on-year at that point.