PERNOD SEES UNSTABLE GROWTH IN Q1
Despite easy global comps, 5.6% organic sales growth was negatively affected by tough U.S. comps for ex-Allied brands and delayed promotions in the U.S., Spain, France and China.
Spirits operations recorded organic growth of 7.3%, while wine fell 4.7%, primarily in the U.K. and U.S.
Driven by premiumization and favorable brand mix, Pernod's top 15 brands, including those from Allied Domecq, grew 2% volume and 7% sales, putting it back in line with the “old Pernod’s” top 12 brand growth in the 2006 fiscal year. Ballantine’s and Martell reported great sales growth, up 27% and 22% respectively, but Chivas, down 6%, was held back by promotional timings in China and the U.S. Growth from Stolichnaya (25%), Jameson (14%), Beefeater (14%) and Malibu (+0%) helped offset Chivas’ decline, however. Analysts expect growth to accelerate in the U.S. during the second quarter.
UBS stated: “We expect to see a shift of shipments into Q207FY especially from the US (though not China).”
In the Americas, 1.7% organic sales growth was negatively impacted by the U.S. An abnormally high 2005/2006 1st quarter for Allied Domecq brands and the postponement to the 2nd quarter of shipments for end of year sales hurt growth in the area. Jameson, Stolichnaya, Malibu, The Glenlivet, Wild Turkey and Seagram's Gin remained profitable, while Chivas Regal and Kahlua continue to experience the most difficulties.
Spirits operations recorded organic growth of 7.3%, while wine fell 4.7%, primarily in the U.K. and U.S.
Driven by premiumization and favorable brand mix, Pernod's top 15 brands, including those from Allied Domecq, grew 2% volume and 7% sales, putting it back in line with the “old Pernod’s” top 12 brand growth in the 2006 fiscal year. Ballantine’s and Martell reported great sales growth, up 27% and 22% respectively, but Chivas, down 6%, was held back by promotional timings in China and the U.S. Growth from Stolichnaya (25%), Jameson (14%), Beefeater (14%) and Malibu (+0%) helped offset Chivas’ decline, however. Analysts expect growth to accelerate in the U.S. during the second quarter.
UBS stated: “We expect to see a shift of shipments into Q207FY especially from the US (though not China).”
In the Americas, 1.7% organic sales growth was negatively impacted by the U.S. An abnormally high 2005/2006 1st quarter for Allied Domecq brands and the postponement to the 2nd quarter of shipments for end of year sales hurt growth in the area. Jameson, Stolichnaya, Malibu, The Glenlivet, Wild Turkey and Seagram's Gin remained profitable, while Chivas Regal and Kahlua continue to experience the most difficulties.
posted at 2:03 PM
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