SOURCE: PERNOD RICARD

May 04, 2007 01:59 ET

PERNOD RICARD : Sales for 9 months to 31 March 2007 : EUR 4,898 million

PARIS -- (MARKET WIRE) -- May 4, 2007 -- Sales for 9 months to 31 March 2007: EUR 4,898 million

- Strong organic growth*: first 9 months: +10.3%

3rd quarter: +12.2%

- Vigorous organic growth* by 15 strategic brands:

+10% in volume +14% in value

Press release - Paris, 4 May 2007 - For the first nine months of the 2006/07 financial year (1 July 2006 to 31 March 2007), Pernod Ricard recorded consolidated sales (excluding duties and taxes) of EUR 4,898 million, a +7.2% increase compared to the previous period and an excellent +10.3% organic growth (-3.0% unfavourable foreign exchange impact, favourable group structure effect of +0.3%).

Spirits continued to perform remarkably well with organic growth* of +12.6%, whereas wine brands experienced renewed growth (3rd quarter organic growth of +6.8%). The most dynamic geographic areas remained Asia / Rest of World and Americas, along with enhanced organic growth* in Europe.

The premiumisation of the Group's portfolio continued. The 15 strategic brands thus registered strong organic growth of +10% in volume and +14% in value. Ballantine's (+23%), Martell (+21%), Stolichnaya (+20%), Havana Club (+16%), The Glenlivet (+13%) and Jameson (+12%) performed best with volume organic growth. Such high growth rates were even more marked among super and ultra premium spirit brands**, which posted an average growth rate of +32%: Ballantine's 30 years old (+57%), Martell Cordon Bleu (+43%), Chivas Regal 18 years old (+35%) and Royal Salute (+20%).

Consolidated sales for the 3rd quarter amounted to EUR 1,391 million, an increase of +6.8%, of which +12.2% organic growth, -4.0% foreign exchange impact and -0.9% group structure effect.

Sales growth in the 3rd quarter was due in particular to the following:

- vigorous Europe sales,

- successful Chinese New Year-related sales,

- recovery of the wine business.

Currency effect

The continuing decline in the US dollar, a certain number of Asian currencies and the Mexican peso versus euro had an adverse affect of sales for the first nine months of the 2006/2007 financial year of EUR 139 million. This currency effect will also adversely affect the growth in full- year operating profit from ordinary activities by some EUR 80 million, if the exchange rates remain at their current level.

* Organic growth, measured from August to March for Allied Domecq brands and over 9 months for Pernod Ricard original brands

** Selling price equal or higher than Ballantine's 15 years old and Martell VSOPAll geographic regions contributed to growth

- Asia/ Rest of World: EUR 1,465 million (+12.1%, that is +14.1% organic growth*)

The Asia / Rest of World region experienced faster growth, further enhanced by the success of the Chinese New Year.

. China: Martell, Chivas Regal and Ballantine's experienced strong growth.

. India: outstanding growth by Royal Stag (+42%) and Imperial Blue (+26%) whiskies.

. Thailand: decline of the 100 Pipers scotch whisky brand (-17%) in a difficult market.

. Australia and New Zealand: faster growth thanks to Montana and Jacob's Creek wines, as well as spirits.

- Americas: EUR 1,331 million (+5.5%, that is organic growth* of +11.1%**)

. North America (organic growth*: +8.2%**)

The US recorded good performances by spirit brands (Jameson, The Glenlivet, Stolichnaya, Malibu, Seagram Gin, Wild Turkey) as well as wines (Jacob's Creek, Campo Viejo, Mumm Napa).

Mexico posted double-digit growth thanks to the expansion of international brands (Martell, Havana Club, Chivas Regal) as well as local brands (Presidente, Don Pedro).

. Central and South America (organic growth*: +24.6%)

Central and South America recorded very strong growth. Chivas Regal and Havana Club were the main growth drivers. Local brands Montilla (Brazil) and Something Special (Venezuela) experienced strong growth.

- Europe: EUR 1,608 million (+5.8%, that is organic growth* of +8.7%**)

Recovery by Western Europe markets: UK, Italy, Germany, was added to the vigour of Eastern European countries.

. Spirits recorded strong growth (+12.4%**) thanks to Ballantine's (Germany, Eastern Europe), Havana Club (Germany, Greece), Jameson (Ireland, Russia), Beefeater (Spain, UK), Martell (UK, Russia)and Chivas Regal (Germany, Russia).

. The wine portfolio showed signs of recovery. Over the 3rd quarter, Jacob's Creek recovered in the UK while Montana and Campo Viejo continued to grow.

- France: EUR 494 million (+2.6%, that is organic growth* of +1.6%)

Aniseed market stabilisation and growth of the Ricard brand were confirmed, as testified by Panel IRI/ Infoscan Census 12 months: Ricard (+4.3%) compared to the aniseed market (+3%). Other strategic brands experienced strong growth, such as Ballantine's, Chivas Regal and Havana Club. Conclusion and outlook

Commenting on these results, Patrick Ricard, Chairman and CEO, stated: " These very good results are in line with our expectations and indicate favourable prospects for the second half year. We therefore confirm, guidance of around 20% growth in net profit from ordinary activities (Group Share), excluding foreign exchange impact, for the full year."

* Organic growth, measured from August to March for Allied Domecq brands and over 9 months for Pernod Ricard original brands

** Excluding bulk spirits sales

Shareholders' agenda: 2006/2007 full-year sales - Thursday 26 July 2007

Pernod Ricard contacts

Francisco de la VEGA / Communication VP

Tel: +33 (0)1 41 00 40 96

Denis FIEVET/ Financial Communication - Investor Relations VP

Tel: +33 (0)1 41 00 41 71

Patrick de BORREDON/ Investor Relations Advisor

Tel: +33 (0)1 41 00 41 71

Florence TARON / Press Relations Manager

Tel: +33 (0)1 41 00 40 88

Appendices 9 months 2006/07 (*)

Analysis of sales at 31 March 2007 (EUR millions)

+-------------------------+--------------+-----+--------------+-----+-----+
|                         |31 March 2006 |     |31 March 2007 |     |     |
+-------------------------+--------------+-----+--------------+-----+-----+
|                         |   (9 months) |     |   (9 months) |   |Change |
+-------------------------+--------------+-----+--------------+-----+-----+
|                         |              |     |              |     |     |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits France    |          482 | 11% |          494 | 10% |  12 |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits Europe    |        1 520 | 33% |        1 608 | 33% |  88 |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits Americas  |        1 262 | 28% |        1 331 | 27% |  69 |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits Asia/Rest |        1 307 | 29% |        1 465 | 30% | 158 |
|of the world             |              |     |              |     |     |
+-------------------------+--------------+-----+--------------+-----+-----+
|Total Group              |        4 571 |100% |        4 898 |100% | 328 |
+-------------------------+--------------+-----+--------------+-----+-----+

+-------------------------+-------+----------------+-------+--------------+
|                         |       |Organic growth, |       |Organic growth|
+-------------------------+-------+----------------+-------+--------------+
|                         |       | including bulk |       |excluding bulk|
|                         |       |                |       | sales        |
+-------------------------+-------+----------------+-------+--------------+
|                         |       |  spirits sales |       |              |
+-------------------------+-------+----------------+-------+--------------+
|Wine & Spirits France    | 2,60% |              8 | 1,60% |8             |
+-------------------------+-------+----------------+-------+--------------+
|Wine & Spirits Europe    | 5,80% |            118 | 8,20% |122           |
+-------------------------+-------+----------------+-------+--------------+
|Wine & Spirits Americas  | 5,50% |            146 |12,20% |131           |
+-------------------------+-------+----------------+-------+--------------+
|Wine & Spirits Asia/Rest |12,10% |            182 |14,10% |182           |
|of the world             |       |                |       |              |
+-------------------------+-------+----------------+-------+--------------+
|Total Group              | 7,20% |            454 |10,30% |444           |
+-------------------------+-------+----------------+-------+--------------+

+-------------------------+-------+
|                         |       |
+-------------------------+-------+
|                         |       |
+-------------------------+-------+
|                         |       |
+-------------------------+-------+
|Wine & Spirits France    | 1,60% |
+-------------------------+-------+
|Wine & Spirits Europe    | 8,70% |
+-------------------------+-------+
|Wine & Spirits Americas  |11,10% |
+-------------------------+-------+
|Wine & Spirits Asia/Rest |14,10% |
|of the world             |       |
+-------------------------+-------+
|Total Group              |10,20% |
+-------------------------+-------+
Analysis of sales for the 3rd quarter 2007 (EUR millions)
+-------------------------+--------------+-----+--------------+---+-------+
|                         |31 March 2006 |     |31 March 2007 |   |Change |
+-------------------------+--------------+-----+--------------+-----+-----+
|                         |   (3 months) |     |  (3 months ) |     |     |
|                         |              |     |              |     |     |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits France    |          125 | 10% |          126 |  9% |   1 |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits Europe    |          384 | 29% |          434 | 31% |  50 |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits Americas  |          367 | 28% |          346 | 25% | -21 |
+-------------------------+--------------+-----+--------------+-----+-----+
|Wine & Spirits Asia/Rest |          427 | 33% |          485 | 35% | 485 |
|of the world             |              |     |              |     |     |
+-------------------------+--------------+-----+--------------+-----+-----+
|Total Group              |        1 303 |100% |        1 391 |100% |  88 |
+-------------------------+--------------+-----+--------------+-----+-----+

+-------------------------+-------+--------------------+-------+
|                         |       |Organic growth,     |       |
+-------------------------+-------+--------------------+-------+
|                         |       |including bulk      |       |
|                         |       |spirits sales       |       |
+-------------------------+-------+--------------------+-------+
|Wine & Spirits France    | 0,70% |1                   | 1,10% |
+-------------------------+-------+--------------------+-------+
|Wine & Spirits Europe    |13,00% |55                  |15,00% |
+-------------------------+-------+--------------------+-------+
|Wine & Spirits Americas  |-5,60% |18                  | 5,20% |
+-------------------------+-------+--------------------+-------+
|Wine & Spirits Asia/Rest |13,70% |78                  |18,70% |
|of the world             |       |                    |       |
+-------------------------+-------+--------------------+-------+
|Total Group              | 6,80% |151                 |12,20% |
+-------------------------+-------+--------------------+-------+

+-------------------------+--------------------+-------+
|                         |Organic growth,     |       |
+-------------------------+--------------------+-------+
|                         |excluding bulk sales|       |
|                         |                    |       |
+-------------------------+--------------------+-------+
|Wine & Spirits France    |1                   | 1,10% |
+-------------------------+--------------------+-------+
|Wine & Spirits Europe    |53                  |15,00% |
+-------------------------+--------------------+-------+
|Wine & Spirits Americas  |16                  | 4,60% |
+-------------------------+--------------------+-------+
|Wine & Spirits Asia/Rest |78                  |18,70% |
|of the world             |                    |       |
+-------------------------+--------------------+-------+
|Total Group              |148                 |12,00% |
+-------------------------+--------------------+-------+
+-------------------------+-----+
|Detail of the Group      | MEUR   |
|structure impact         |     |
+-------------------------+-----+
|AD brands - July 06      | 185 |
+-------------------------+-----+
|AD brands - July 05      | -46 |
+-------------------------+-----+
|Brands disposed and      |-126 |
|discontinued distribution|     |
+-------------------------+-----+
|Group Structure impact   |  13 |
+-------------------------+-----+
+-------------------------+------------+
|Detail of the Bulk sale  |change (MEUR ) |
|variations               |            |
+-------------------------+------------+
|Scotch Whisky bulk sales |         -4 |
+-------------------------+------------+
|Canadian whisky bulk     |         14 |
|sales                    |            |
+-------------------------+------------+
|including sale of Rich & |         11 |
|Rare inventories         |            |
+-------------------------+------------+
|Other bulk spirits sales |          - |
+-------------------------+------------+
|Total movement in bulk   |         10 |
|spirits sales            |            |
+-------------------------+------------+
Strategic brands volume and organic growth
+--------------+--------------+----------------+--------------------+
|              |2007 9 months |Volume % change |Volume organic      |
|              |              |                |growth **           |
+--------------+--------------+----------------+--------------------+
|Chivas regal  |              |             6% |6%                  |
+--------------+--------------+----------------+--------------------+
|Ballantine's  |              |            14% |23%                 |
+--------------+--------------+----------------+--------------------+
|Ricard        |              |             1% |1%                  |
+--------------+--------------+----------------+--------------------+
|Martell       |              |            21% |21%                 |
+--------------+--------------+----------------+--------------------+
|Malibu        |              |             5% |8%                  |
+--------------+--------------+----------------+--------------------+
|Kahlua        |              |             0% |4%                  |
+--------------+--------------+----------------+--------------------+
|Jameson       |              |            12% |12%                 |
+--------------+--------------+----------------+--------------------+
|Beefeater     |              |             4% |9%                  |
+--------------+--------------+----------------+--------------------+
|Stolichnaya   |              |            18% |20%                 |
+--------------+--------------+----------------+--------------------+
|Havana Club   |              |            16% |16%                 |
+--------------+--------------+----------------+--------------------+
|The Glenlivet |              |            13% |13%                 |
+--------------+--------------+----------------+--------------------+
|Jacob's Creek |              |             5% |5%                  |
+--------------+--------------+----------------+--------------------+
|Mumm          |              |             3% |4%                  |
+--------------+--------------+----------------+--------------------+
|Perrier Jouet |              |            23% |23%                 |
+--------------+--------------+----------------+--------------------+
|Montana       |              |            15% |15%                 |
+--------------+--------------+----------------+--------------------+
|15 Strategic  |       brands |             8% |10%                 |
+--------------+--------------+----------------+--------------------+

+--------------+--------------------+
|              |Net sales organic   |
|              |growth              |
+--------------+--------------------+
|Chivas regal  |7%                  |
+--------------+--------------------+
|Ballantine's  |28%                 |
+--------------+--------------------+
|Ricard        |1%                  |
+--------------+--------------------+
|Martell       |31%                 |
+--------------+--------------------+
|Malibu        |12%                 |
+--------------+--------------------+
|Kahlua        |9%                  |
+--------------+--------------------+
|Jameson       |18%                 |
+--------------+--------------------+
|Beefeater     |16%                 |
+--------------+--------------------+
|Stolichnaya   |19%                 |
+--------------+--------------------+
|Havana Club   |15%                 |
+--------------+--------------------+
|The Glenlivet |15%                 |
+--------------+--------------------+
|Jacob's Creek |2%                  |
+--------------+--------------------+
|Mumm          |5%                  |
+--------------+--------------------+
|Perrier Jouet |31%                 |
+--------------+--------------------+
|Montana       |14%                 |
+--------------+--------------------+
|15 Strategic  |14%                 |
+--------------+--------------------+
** organic growth of volume measured from August to December for AD brands
+-------------------------+----------------+---------+
|Currency effect on Wine  |Currency effect |Currency |
|and Spirits              |                |         |
+-------------------------+----------------+---------+
|                         | 9 months sales |effect % |
+-------------------------+----------------+---------+
|US dollar and related    |            -71 |     51% |
|currencies,              |                |         |
+-------------------------+----------------+---------+
|MYR, HKD, CNY            |            -13 |      9% |
+-------------------------+----------------+---------+
|Australian Dollar        |             -7 |      5% |
+-------------------------+----------------+---------+
|New Zealand Dollar       |             -9 |      6% |
+-------------------------+----------------+---------+
|Indian Rupee             |             -9 |      7% |
+-------------------------+----------------+---------+
|Mexican Peso             |            -12 |      9% |
+-------------------------+----------------+---------+
|Other currencies         |            -18 |     13% |
+-------------------------+----------------+---------+
|TOTAL                    |           -139 |    100% |
+-------------------------+----------------+---------+
(*) period from 1st July 2006 to 31st March 2007

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