Pernod Ricard's half yearly results cheer

Wednesday, 2 October 2002

Drinks giant Pernod Ricard, which owns Irish Distillers, has reported an increase of 18% in half yearly group sales to €2.6 billion. Group operating profit jumped by 63% to €296 million for the first half of 2002, while net profit was up 47% to €154 million.

Pernod Richard said its spirits and wines division, which includes such brands as Jameson Whiskey and Jacob's Creek wine, recorded sales of €1.5 billion - before duties and taxes. This was a hike of 78% from the same time last year.

The division's operating profit soared by 110% to €265 million and the company said its operating margin widened to 17.6%, compared with 15% in H1 2001.

Half year sales of Seagram brands amounted to €605 million - in line with the company's projections. Pernod said the acquisition had restored an even geographical balance in sales and profits to the benefit of the Americas and Asia.

Pernod Ricard said it had completed the planned disposal of non-core businesses and generated €1.3 billion as a result. The company said it was able to fully repay the €1 billion bridging loan taken out to finance the Seagram acquisition.

Pernod said its net debt stood at €2.7 billion at June 30, compared to €3.7 million at the end of 2001 following a €489 million bond issued last February.

Despite the slight slowdown in some markets since June, Pernod Ricard said it is maintaining its targets. It sees sales growth of some 90% relative to 2002 in the spirits and wine division this year and a two fold increase in operating profit.

'The integration of the Seagram brands has already proved successful and is consistent with our ambitious objectives for the development of the group and growth in shareholder value,' Pernod Ricard Chairman Patrick Ricard said in a statement.