€742m profit for Pernod

PERNOD Ricard SA, the world’s third-largest liquor maker made operating profits of €742m in 2004, mainly from its wine and spirits division.

At the end of the first nine months, the Irish Distiller’s parent said it was on track to achieve growth of between 8 and 10%.

The operating figure, in fact, contains a 9.6% organic growth figure over the year to the end of December 2004.

Net profits at €487 million was slightly ahead of median forecasts from analysts of €482m.

Pernod reported sales growth everywhere except in Ireland and France. In Ireland, the smoking ban and high taxes on spirits hit sales and profits, the company believes.

In the case of France, the group’s domestic market, a clampdown on drink driving and sluggish economic growth saw sales decline in that market by 0.2% for the year. Unemployment in France rose in January to a five-year high of 10%, depressing sales, while volumes in Ireland fell after the country banned smoking in pubs a year ago, said Richard Burrows, joint group chief executive and former chief executive, Irish Distillers Group.

Sales fell 0.2% in France, which accounts for 18% of Pernod’s drinks volumes, compared with growth of 2.5% for all of Europe and 7.7%% for the Asia Pacific region.

Annual operating profit at the wine and spirits division rose 21% overall to €742m in 2004, on sales that grew 2.1%% to €3.49bn.

Chivas volumes rose 12% last year, while Martell climbed 7%.

Jameson whiskey volumes advanced 10% and the Irish whiskey has achieved year on year growth of almost 9% since it became part of the French operation in 1988.

It sold 1.6 million cases in 2003 and with 17 years of uninterrupted growth is the fastest-growing of all whiskey brands.