Pernod Ricard reveals fastest growth rate in more than 30 years

Pernod Ricard has revealed 17% sales growth in 2022, totalling €10,701m, in what marks its fastest growth rate in over 30 years.

In its FY22 results, the drinks giant saw sales grow by double digits across each of its regions and spirit categories with the Americas up 12% showing very “strong growth in North America” and “dynamic growth in LATAM” supported by a strong rebound in travel retail.

Asia and the rest of the world saw a 19% lift in sales led by India, Turkey, China and Sub-Saharan Africa as well as a “very strong performance in Korea and Japan”.

Europe also enjoyed a 19% rise led by Spain, Germany, Poland and UK also with a very strong rebound in travel retail as people took to travel again.

All spirits categories delivered strong double digit growth including Pernod Ricard’s strategic international brands which were up 18% across all regions led by Jameson, Chivas Regal, Ballantine’s, Absolut and Martell.

Pernod Ricard’s strategic local brands also saw an 18% lift led by Seagram’s Indian whiskies, Kahlua, Olmeca and Seagram’s Gin.

Specialty brands within its portfolio saw sales go up 24% led by American whiskies, gins and agave brands and the category doubled its weight in sales vs. FY19.

Wine sales took the hit for the company with a 4% dip in sales in what the company called an “overall soft performance” that it owed in part to the lower harvests in New Zealand having a knock on effect.

However, Pernod Ricard’s FY22 figures still delivered record sales with market share gains in most markets, while leveraging its portfolio and geographical reach to achieve price increases across all markets.

The results show that sales were driven by strong recovery of the on-trade, resilience in the off-trade and a rapid rebound in travel retail, despite passenger traffic still being subdued in China.

Pernod Ricard chairman and CEO Alexandre Ricard said: “Three words summarise Pernod Ricard’s excellent performance in FY22: record, balanced and sustainable. FY22 was a record year in many respects. Our sales broke the symbolic milestone of €10 billion with our fastest growth rate in over 30 years, delivering a record €3 billion profit from recurring operations at a record operating margin of 28.3%. FY22’s performance was also very well balanced. Growth was driven by all regions, categories, price points and channels, with a comparable contribution from both mature and emerging markets.”

Ricard explained: “Most importantly, our performance was sustainable thanks to the real progress we’ve made on delivering our strategic roadmap ‘Good Times from a Good Place’.

He added: “There has definitely been a newfound appreciation for conviviality since the Covid outbreak and I would like to take this opportunity to praise our teams whose commitment has never wavered, and who continue to play a key role in facilitating convivial experiences with our brands around the world. While we are faced with a challenging and volatile environment, I am confident that our unique competitive advantages and the rapid deployment of our digital transformation will enable us to deliver our FY23 to FY25 medium-term financial framework.”