Pernod Ricard sales suffer -3.9% drop through travel retail absence

Pernod Ricard sales for H1 FY21 have shown an organic decline of -3.9% on the previous year largely due to the ongoing struggles of travel retail.

The French spirits giant announced in its financial results statement that the travel retail market has shown “significant decline” in the Americas, Asia and Europe due to the ongoing travel restrictions caused by Covid-19.

Sales excluding travel retail however grew 1% with China up 13% and the US gaining 5% while Profit from Recurring Operations declined -2.4% organically.

The company’s strategic international brands also suffered due to the lack of travel retail and on-trade exposure while its specialty brands saw a growth of 22%.

Pernod Ricard also announced that all single-use point-of-sales plastic will be removed from June 2021.

Alexandre Ricard, CEO, said: “We are particularly encouraged by our must-win domestic markets returning to growth in H1 FY21. The first half confirms the long-term sustainability and underlying strength of our business.

“Despite an uncertain and volatile environment, with disruption in the on-trade and a prolonged downturn in travel retail, we anticipate organic sales growth for full-year FY21, thanks in particular to our dynamic performance in domestic must-win markets US, China and India.”


Sales for H1 FY21 totalled €4,985m, with an organic decline of -3.9% (-8.9% reported), with an unfavourable FX impact linked mainly to Euro appreciation vs. USD and Emerging market currencies.

H1 FY21 Sales declined but Q2 improved vs. Q1. For H1 FY21, the trends were:

• Americas +2%: good growth in most domestic markets, with particular dynamism in USA (+5%), but significant decline in Travel Retail

• Asia-RoW -6%: double-digit growth in China (+13%), Turkey, Korea and Pacific, and return to growth in India in Q2: +2% (India H1 -6%), but Covid-related declines in certain Asian markets and Travel Retail

• Europe -5%: continued very strong growth in Germany, UK, Russia and Poland, more than offset by Covid impact in Spain, France, Ireland and Travel Retail

• Sales excluding Travel Retail grew +1%.

Strategic International Brands declined due to Travel Retail and On-Trade exposure but Specialty Brands performed very strongly:

• Strategic International Brands -6%: solid growth of Malibu, Jameson and The Glenlivet, but overall category impacted by Travel Retail exposure. Martell and Scotch growing in domestic markets

• Strategic Local Brands -4%: mainly driven by Seagram’s Indian whiskies and Seagram’s Gin in Spain

• Specialty Brands +22%: continued very dynamic development of Lillet, Malfy, Aberlour, American whiskeys (Jefferson’s, TX, Rabbit Hole and Smooth Ambler), Avion and Redbreast

• Strategic Wines +3%: solid growth thanks mainly to Campo Viejo and Brancott Estate.

Pernod Ricard gained or held share in key markets, notably in Europe, despite the On-trade disruption. Dynamic portfolio management continued, with Innovation in strong growth (+10%.)

Q2 Sales were €2,750m, with -2.4% organic decline, but improving vs. Q1 Sales (-5.6%), thanks in particular to better trends in China and India.


H1 FY21 Profit from Recurring Operations declined -2.4% organically, with an organic margin improvement of +51bps, thanks to dynamic management of resources and favourable phasing: