Poor Indian whiskey demand cited for slow down in sales growth at Pernod Ricard
Pernod Ricard, the spirits maker which includes Jameson Irish whiskey among its brands, has said that its sales growth slowed slightly in the third quarter of the year due to weaker demand in India and the timing of the Chinese new year in 2017.
Overall sales for the three months to March 31 were €1.987bn, up 3pc.
Growth in the Americas region was up 8pc with the group recording sales of €602m, while in Asia sales were €837m, with Europe accounting for the remaining €547m of sales.
In India, which accounts for about 10pc of Pernod Ricard group revenue, a government ban on high-value bank notes has held back local consumption.
There has also been a ban on alcohol sales near highways in India since April 1.
International brands were a key driver of the sales growth improvement for the company, with Jameson, Ballantine’s and Absolute and Martell brands all performing well.
However local brands were flat due to the temporary slowdown on Indian whiskies.
“We have strong year-to-date sales growth at 4pc. In an uncertain environment, our strategy is consistent and driving results, in particular in diversifying the sources of growth. We confirm our 2017 guidance of organic growth in profit from recurring operations of between 2pc and 4pc”, Alexandre Ricard, chairman and ceo of Pernod Ricard said.
(Additional reporting from Reuters)