French spirits group Pernod Ricard is confident that its business in Europe, the Middle East, Africa and Latin America (EMEA/LATAM) will continue to deliver above market sales growth while protecting its margins in the 2023 fiscal year, Gilles Bogaert, CEO, EMEA-LATAM said on Tuesday.
Bogaert was speaking in a video clip ahead of an investor presentation later in the day.
Key Focus
A key focus for the region, which accounts for about 30% of group sales, entailed growing revenue to protect margins, continuing to increase prices, 'agile' resource allocation and further digital transformation, he said.
Last month, Pernod Ricard, the world's second-biggest spirits group behind Diageo, said it was confident group sales growth would remain dynamic through the fiscal year to 30 June after it delivered forecast-beating sales in the first quarter helped by price increases as consumers trade up to its premium spirits.
Outlook
In an environment that remained volatile with high inflation, the war in Ukraine, and COVID-19 lockdowns in some Chinese cities, on the 20 October the group noted that it expected that sales growth for the full year would remain 'dynamic and broad-based, albeit moderating on a normalising comparison basis.'
First-Quarter Performance
For the first quarter ended 30 September, Pernod Ricard - which owns, Mumm champagne and Absolut vodka - reported sales of €3.31 billion ($3.23 billion), a like-for-like rise of 11%, which came above market expectations for a 9.3% sales rise.
News by Reuters, edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the latest Checkout print edition.
