China Food

Pernod Ricard’s new year’s revenue broke 10 billion euros for the first time! CEO said that China’s market trend has improved significantly

Foreign wine giant Pernod Ricard broke the record again!

Snack generation noticed that recently, the world’s second-largest spirits and wine group, which owns many well-known brands such as Martell, Ballantine’s, Chivas, etc., released the results of the 2022 fiscal year (Note: from July 1, 2021 to June 30, 2022). The annual sales reached 10.701 billion euros (now about 73.637 billion yuan), a record high, and reached the fastest growth rate in more than 30 years.


The latest financial year 2022 results show that Pernod Ricard’s growth in the Chinese market is 5%. At the performance meeting held after the release of the financial report, Alexandre Ricard, chairman and CEO of Pernod Ricard group, and other senior executives further interpreted the latest performance of China’s business, and responded to analysts’ questions about the impact of the epidemic in China, price increase plans, inventory management, and preparations for the mid autumn peak season.

保乐力加集团董事长兼CEO李家祺(Alexandre Ricard,资料图片)

Next, the snack generation will take you to pay attention to the on-site news.

China grows by 5%

“We are more resilient than many other categories.” Li Jiaqi said at the meeting, “during the economic downturn in the past few years, we have witnessed this resilience in wine and spirits. Compared with before the epidemic in 2019, the value of the global spirits market has increased by 11%, which shows that spirits above the high end have performed well.”

As one of the four “must win” markets delineated by Pernod Ricard, the Chinese market has achieved growth in fiscal year 2022 despite the challenge of the epidemic.

5% growth in China

“The Chinese market grew by 5% over the previous fiscal year, while the three-year CAGR was 9%. As you know, we had a good start in the previous fiscal year, but the fourth fiscal quarter was affected by strict epidemic prevention measures.” Li Jiaqi pointed out at the meeting, “since June, with the relaxation of restrictions, this trend has improved. So far, we have had a good start in China (fiscal year 2023).”

In interpreting the performance of Pernod Ricard’s core brands, Li Jiaqi mentioned that in fiscal year 2022, Martell’s global organic net sales increased by 7% year-on-year, which was a good result on a very high comparison basis (especially in China); At the same time, Martell blue Swift’s growth in the United States is excellent, and its marketing activities are very successful.

He pointed out that from March to may, the growth of the Chinese market was affected by the epidemic restrictions. But from the perspective of the whole fiscal year 2022, according to IWSR data, Martell has strengthened its market position in China, and the brand also adjusted its price in mid May, rising by a single digit. In addition, single malt whisky performed well, and Granville’s sales “almost doubled” on a very strong year-on-year basis. High end spirits absolute vodka and bifida “continue to show a good momentum of development”.

Xiaoshidai noticed that an analyst further asked, “you mentioned that the trading trend has improved significantly since June. Can you provide more information about the current situation of China’s business? In addition, you can talk about the potential in inventory in recent months and the first quarter of fiscal year 2023

In all sales regions, Pernod Ricard’s sales have achieved double-digit growth. Among them, the American market grew by 12%; Asia and other regions increased by 19%, mainly due to the rapid growth of Indian, Türkiye, China and sub Saharan Africa markets, while South Korean and Japanese markets also performed prominently; The European market grew by 19%.

“A very important point is that our four ambition markets are all full of vitality: India’s growth is 26%, tourism retail growth is nearly 50%, the United States’ growth is 8%, and China’s growth is 5%.” Li Jiaqi said.

In fiscal year 2022, the share of Pernod Ricard group in most markets has increased. “We have basically implemented price increases in all markets, with prices rising by an average of about 5% worldwide. The strong recovery of the ready to drink market, the resilience of the non ready to drink market, and the rapid rebound of the tourism retail channel (although the passenger flow in the Chinese market is still low) have boosted sales to a new high.” He said.

The snack agent noticed that although the tourism retail business grew by about 50%, the three-year CAGR was still – 13%. “However, our value leadership in the field of tourism retail has been significantly strengthened. In fiscal year 2023, we expect that the profit of tourism retail will return to the level before the pandemic.” Li Jiaqi mentioned at the meeting.

The profitability of Pernod Ricard is quite bright.

The financial report shows that in fiscal year 2022, the net profit of Pernod Ricard reached 1.996 billion euros, a sharp increase of 53%, mainly due to the profit growth of continuing operations, the decrease of financial expenditure and the favorable impact of foreign exchange.

The company pointed out that the profit from continuing operations reached 3.024 billion euros, achieving an increase of 19% (the reported increase was 25%; due to the appreciation of the US dollar and RMB against the euro, it increased by about 160 million euros), and the operating profit margin organically increased by 52 basis points.

The financial report shows that the gross profit margin increased by 12 basis points, and the price, portfolio effect and fixed cost absorption offset the increase in the cost of main business; Advertising and promotion expenses account for about 16% of sales; The structural cost increased as planned, mainly for recruitment to help digital transformation.

In addition, in fiscal year 2022, the free cash flow from continuing operations reached 1.926 billion euros, a record high. The group has proposed a dividend of 4.12 euros, up 32% from fiscal year 2021.

Let’s look at it by brand.

In its financial report, Pernod Ricard pointed out that in fiscal year 2022, strategic international brands increased by 18%, and all regions achieved strong growth, mainly due to the good performance of Jameson, Chivas, Ballantine’s, absolute vodka and Martell. Strategic local brands grew rapidly by 18%, mainly due to the excellent performance of schland Indian whisky, manna, Omega and schland gin.

Some products of Pernod Ricard

In addition, characteristic brands increased by 24%, mainly due to American whisky, gin and tequila brands; Compared with fiscal year 2019, the sales of featured brands doubled. As for strategic wine brands, it decreased by 4%, and the overall performance was weak, mainly affected by the decline of grape production in New Zealand.

“Since the outbreak of COVID-19, people have gained a new understanding of happy gatherings. I would like to take this opportunity to commend our team for their perseverance in bringing happy gatherings to consumers all over the world. Although the market environment we are in is still full of challenges and changes, I believe that our unique competitive advantages and the rapid implementation of digital transformation will help us achieve our medium-term financial goals from fiscal year 2023 to fiscal year 2025 Bid. ” Li Jiaqi said.

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Pernod Ricard’s new year’s revenue broke 10 billion euros for the first time! CEO said that China’s market trend has improved significantly

















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