Pernod Ricard saw improved performance in the global travel-retail (GTR) channel, helping sales and recurring operations to grow 4% organically in the first half of 2017 to €1.5bn ($1.6bn). Total group sales reached €5.061bn.
The positive numbers in the travel-retail channel were as a result of new organisations getting up to speed. Improvement was also seen in the Americas region, where achieved +7% organic sales growth during H1 2017, more so than in the +4% growth recorded in the same period last year. Sales in the region’s travel-retail channel reached +14%, sparking a return to growth, which has been driven by Martell expanding its distribution channels and increasing its visibility across airports in the US.
Martell saw sales grow +7%, with a return to strong growth in China, shaped by new product releases such as the Cordon Bleu Intense Heat Cask Finish, although all segments also seemed to see a positive lift. Ballantine’s also managed to see a sales lift in the Asia travel-retail market.
Travel-retail Asia saw sales in modest decline, albeit an improvement on H1 2016. However, the scotch category is still faced with a tough market in the region and a competitive environment. Difficulties were also experienced in the European channel.
Pernod Ricard Group chairman and CEO Alexandre Ricard declared: “Our half-year results are strong, delivering a continued performance improvement. Our strategy remains consistent and is driving results.
“For full-year FY17, in an uncertain environment, we plan to continue improving our business performance year-on-year vs. FY16. We will continue to support priority markets, brands and innovations while focusing on operational excellence. We expect to deliver organic growth in Profit from Recurring Operations in line with the guidance of +2% to +4%.”
