Press releases

2005 1st quarter net sales
All premium brands remain well positioned

 - Wine & Spirits net sales: (+8.4% organic growth, +6.4% excluding bulk sales)
 - Continued premiumisation of brands portfolio
 - Asia/Rest of World: growth driver for the quarter

Pernod Ricard Wine & Spirits net sales, excluding duties and taxes, amounted to € 753 million for the 1st quarter ending 31 March 2005, up 7% over the same period last year (€ 704 million).
This very favourable growth resulted from the following factors:
 - Organic growth: +6.4% (excluding bulk net sales)
 - Significant bulk spirits net sales (impact +2.0%)
 - Weak forex impact (- € 7.8 million = -1.1%)
 - Insignificant structure impact (- € 2.2 million = -0.3%)

Continued premiumisation of brands portfolio
For the 1st quarter of 2005, the 12 key brands posted +3% volume growth and +9% value growth. This strong progression by premium brands explains the +6% favourable price/mix effect on our sales: thus, Chivas Regal progressed by +18%, while Martell and Jameson rose by +10% at the same time. In addition, the remarkable performances of Jacob’s Creek (+16%), Havana Club (+11%) and Ramazzotti (+31%) should also be highlighted.  

Remarkable start of year for Asia/ Rest of World: +18.5% organic growth
The Chinese New Year was a major success for Chivas and Martell. China has become the most important market for the Chivas Regal brand, while Martell Cordon Bleu confirmed its superb dynamic performance (volumes +37%) in this region. India with Royal Stag (+36%) and Thailand with 100 Pipers (+50%) also contributed to the strong growth in this region, with the only exceptions being Japan and more recently Taiwan, both of which experienced difficult market conditions.

Contrasting situation in the Americas: -0.6% organic growth
Organic growth in the United States amounted to -1.8%. Seagram’s Gin volumes were significantly down (-18%), with 2004 1st quarter volumes having been impacted by an increase in net sales. This negative technical impact masks the underlying good growth of Jameson and The Glenlivet as well as the confirmation of the recovery of Martell and Chivas Regal.

In South America, sales continued on the same very favourable trend as observed in 2004. Venezuela distinguished itself thanks to Chivas Regal, Something Special and 100 Pipers sales, while the growth in Havana Club sales remained sustained, particularly in Cuba.
 
+7.6% organic growth in Europe (excluding France) (+13.2% bulk spirits sales included)
Europe experienced, in the 1st quarter of 2005 a sustained growth in sales.  The United Kingdom, with Jacob’s Creek (+45%), Germany with Ramazzotti and Havana Club, and Eastern Europe with Chivas all achieved good growth, partly explained by technical impacts (increased Ramazzotti sales in Germany and an increase in excise taxes in Greece).  Both the Irish and Italian markets experienced a difficult quarter.

Contraction in France: -6.4% organic growth
The aniseeds market remains very poorly positioned at the beginning of 2005.  Ricard and Pastis 51 experienced significant reversals in fortune (accentuated by conflicts with certain distributors). In a market that overall remains difficult for Pernod Ricard, Havana Club rum (+12%) and Zubrowka (+31%) and Wyborowa (+21%) vodkas posted very satisfactory performances.

Group consolidated sales (excluding duties and taxes)
Pernod Ricard Group reported 2005 1st quarter consolidated net sales of € 765 million, compared to € 726 million for the same period last year. Non-strategic activity sales now only account for 1.5% of Group net sales following the disposal of CFPO and Marmande. 

Outlook
Regulatory constraints relating to the Allied Domecq offer prevent the Group from issuing a growth guidance, as it ordinarily does. 
In the words of Patrick Ricard, Chairman and CEO: “Our performance for the 1st quarter of 2005 was very satisfactory, enabling me to anticipate significant organic operating profit growth for the 1st half of 2005.”

Shareholders’ agenda
Thursday morning, 28 July 2005: release of net sales for the 1st half of 2005

Change in financial year-end 
The 1st quarter of 2005 represents the 5th quarter of the 2004-2005 financial period and the 3rd quarter of the 2004-2005 12-months pro-forma financial year. Corresponding figures are presented in the appendix.

To access the appendices click here (pdf)

To access the presentation slides click here (pdf)

For more information, please contact:

Francisco de la VEGA Communications VP
Tel: +33 (0)1 41 00 40 96 
Patrick de BORREDON Investor Relations VP
Tel: +33 (0)1 41 00 41 71 
Florence TARON Press Relations Manager
Tel: +33 (0)1 41 00 40 88