13/11/2002 : Spirits & Wine sales grow by 77% - The Group confirms its forecasts for the year.
Paris, 13 November 2002 - At 30 September 2002, Pernod Ricard reported consolidated sales, excluding duties and tax, of €3,664 million, up 10% on the first nine months of 2001. The Spirits & Wine division's sales rose 77%.
Spirits & Wine
The Spirits & Wine division had consolidated sales of €2,297 million in the first nine months of 2002, up 77% year-on-year and consistent with the 78% rise in first-half 2002.
Currencies had a negative impact of €25 million, or 1.9% of sales. This was attributable mainly to the weakness of the Argentine peso, which accounted for 70% of the impact, and of the US dollar.
The sales generated by Seagram brands amounted to €939 million. After the impact of the destocking that affected the first half, the four Seagram brands - Chivas, Martell, Seagram's Gin, The Glenlivet - rallied during the third quarter, confirming the attainment of the year's targets.
Pernod Ricard's historical brands had sales of €1,358 million in the nine months to 30 September, up 3.9% organically. This is slightly less than in the first half, mainly because of weaker consumption of aniseed-based spirits in France, as previously announced.
Non-core businesses
The "Fruit Preparations" business generated sales of €431 million in the period under review, compared with €998 million at 30 September 2001. The difference is due to asset sales under way since the beginning of the year. With the disposal of SIAS MPA in mid-May 2002, the bulk of third-quarter sales originated from the soft drinks activities of Agros, which is in the process of being sold.
Sales from the Distribution business amounted to €936 million compared with €1,033 million at 30 September 2001. The sale of BWG to Electra was finalised on 23 August 2002.
Forecasts:
Based on these positive trends, the company is confirming its forecasts for 2002:
- two-fold increase in operating profit from Spirits & Wine compared with 2001
- operating margin of some 20%
- earnings per share * of €6.40
- gearing ratio of approximately 1:1
* Net of exceptional and extraordinary item and goodwill amortisation, diluted for convertible bonds
