Pernod Ricard see net profits jump 12.3%

Pernod Ricard, the French drinks giant that owns Irish Distillers, today reported group net profits of €464m for 2003, an increase of 12.3% on the previous year, helped by a capital gain from the sale of bank shares and lower financial charges.

On a constant exchange rate basis, operating profit improved by 15.5%. Consolidated sales, excluding duties and taxes, amounted to €3.5bn, an increase of 5.5%, with consolidated operating profit of €739m.

Net profit at the world's third biggest spirits group was boosted by a €60 capital gain derived from the sale of shares in French bank Societe Generale. It was also by a decline in financial charges that fell 33.7% to €102m as the group reduced debt.

Operating profit at its Wine & Spirits division improved to €737m, despite a significant negative currency effect - €83m - increasing the operating profit margin to 21.5% from 20.8% for 2002.

Wine & Spirits sales amounted to €3.4bn, reflecting an 8.1% negative currency effect and 8.1% organic growth, which arose from good results achieved by most brands, both global and local, throughout the world.

Commenting on these results, chief executive Patrick Ricard, said, 'I am very satisfied with the group's 2003 fiscal year results, and particularly the strong growth in our Wine & Spirits business profitability'.

"The group anticipates that it will enjoy a growth in operating profit on a constant exchange rate basis during 2004," he added.