China and US buoy travel retail business in first nine months
04/25/2021|11:21:45 AM|The Moodie Davitt Report

Pernod Ricard revealed nine-month (to 31 March) sales of €6,941 million, down by -3.7% on a reported basis year-on-year (affected by currency exchange) but up +1.7% in organic terms. The performance was driven by a strong third quarter, with organic sales climbing by +19.1% year-on-year to €1,955 million.

Growth in the nine months was led by the “dynamism of must-win domestic markets”, with the US growing at +6%, China at +34% and India back to double-digit growth in Q3.

The company said that travel retail (-50% year-on-year) is “starting to lap an easier comparison base, but [is] still very subdued, with limited passenger traffic”. It highlighted a “softer rate of decline” in Q3, notably in Asia, as well as the “positive performance of off shore duty free in Hainan and Jeju”.

By category, Strategic International Brands grew sales by +1%, driven by Martell, Malibu, Jameson and The Glenlivet. Absolut and blended Scotch are still in decline, impacted by their exposure to travel retail.

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