Drinks giant Pernod Ricard has reported sales of $8.5m for the first nine months of the 2013/14 financial year, a decline of -7%.
The company claimed that the decline was due to a “highly unfavourable foreign exchange effect”.
The French drinks firm reported a 3% decline in sales in Asia and the rest of the world due to destocking in the third quarter, excluding China, where sales growth has increased by 5% over the nine months compared to an increase of 2% in the half-year.
There was a 4% growth in the Americas thanks to good performance in Brazil, although this growth in the latter slowed down slightly compared to the first half.
Europe also reported growth of 2%. Western Europe was stable whilst Eastern Europe posted growth of 9%.
Pernod Ricard Chief Executive Officer, Pierre Pringuet said: “In an environment that remains challenging, our performance over the nine months was in line with the half-year and with our annual guidance. I am pleased with the acquisition of Kenwood and with the strengthening of our partnerships with our two largest US distributors, which reinforce the Group’s portfolio and execution capability in the US.”
Pernod Ricard also announced its plans for its subsidiary, Pernod Ricard USA, to enter into an agreement with F. Korbel & Bros. to purchase assets related to Kenwood Vineyards located in Sonoma Valley, California.
Pernod Richard USA, Chief Executive Officer Bryan Fry stated: “thanks to its long heritage and premium positioning within the well-known Sonoma region, Kenwood offers a unique brand proposition that will strengthen the position of Pernod Ricard’s wine business in the United States.”
The acquisition is expected to close before 30 June 2014.
Laura Bracher, London
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