Absolut Owner Pernod Ricard Profits Jump On Price Hikes

Pernod Ricard, the owner of Absolut vodka, Jameson whiskey, and Beefeater gin, reported a 13 percent increase in yearly net profit on Thursday.

The business, which also owns Malibu rum, Martell cognac, and Pierre-Jouet champagne, declared a profit of 2.26 billion euros ($2.5 billion) for the fiscal year 2022-2023.

Its revenues also increased by 13% to 12.1 billion euros, but only by 1% in terms of volume. Foreign exchange rates were also favorable to the group.

Food and beverage companies boosted prices as inflation skyrocketed last year as a result of Russia’s invasion of Ukraine. Consumer prices had already begun to rise after countries lifted Covid limitations.

But inflation has eased in recent months as central banks have hiked interest rates in efforts to rein in consumer prices.

“Pernod Ricard once again delivered a very strong full-year performance, achieving double-digit broad-based growth in sales and earnings despite a volatile environment,” chief executive Alexandre Ricard said in a statement.

“The relevance of our growth strategy, the desirability of our brands and the unwavering commitment and agility of our teams enabled us to gain share in most markets and strengthen pricing,” he said.

Sales increased in every region, and the group’s important international brands, led by Scotch beverages, Martell, Jameson, and Absolut, performed well.

The company stated that it would maintain its forecast of four to seven percent net sales growth between fiscal years 2023 and 2025.

“While the environment in FY24 (fiscal year 2024) remains challenging, I am confident in Pernod Ricard’s ability to deliver on its medium-term objectives,” Ricard said.

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