First quarter performance on target: 17% organic growth in Wine & Spirits sales
Paris, 7 May 2003 - The Wine & Spirits division reported a 10.6% rise in first-quarter sales to €713 million (excluding duties and taxes). This result is primarily attributable to organic growth of 16.8% and an adverse currency impact of €70 million (-10.9%).
Buoyant sales of Chivas Regal and Martell confirmed the turnaround noted in second-half 2002.
The Group's growth-drivers continued their positive trend, particularly Amaro Ramazzotti, The Glenlivet, Jameson, Jacob's Creek and Havana Club.
These strong performances were achieved amid contrasting political and economic conditions.
Growth in Asia-Pacific was a remarkable 54.4% organic growth. This was mainly driven by robust sales in countries like Thailand, India and in China thanks to successful Chinese New Year promotions. At the end of March, the SARS outbreak had had no noticeable impact on our performance in the region.
In Europe (excluding France), growth continued briskly (16.1% organic growth), driven by volumes of Ramazzotti, Havana Club, Chivas Regal and Martell.
The Americas posted a good quarterly performance (organic growth +3.4%), particularly in the USA which recorded strong growth of whiskies and Jacob's Creek, despite the delay of some Seagram's Gin shipments to April.
In France, consumption was sluggish, and the year got off to a difficult start (-1.4% organically), particularly for anis brands.
Consolidated sales
Sales excluding Wine & Spirits contracted from €547 million to €27 million, reflecting a withdrawal from non-core businesses. As a result, consolidated sales were down 37.8% to €740 million.
