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Bottles of Ricard's aniseed-flavoured beverage are pictured at the Ricard manufacturing unit in Lormont, near Bordeaux, France February 15, 2019. REUTERS/Regis Duvignau/File Photo Acquire Licensing RightsPARIS/LONDON, Oct 19 (Reuters) - French spirits maker Pernod Ricard (PERP.PA) said on Thursday it expected to grow sales over the coming year, despite a difficult first quarter marred by big drops in sales in the United States and China. Pernod struggled as a tough economy in China dampened demand and amid inventory adjustments in the United States, where sales are also normalising after a post-COVID surge. "I am confident that we can deliver broad-based and diversified sales growth in FY24," Ricard said in a statement. But, he continued, it's not clear to what degree there will have been improvement in the economic environment hurting Pernod's performance right now.

Persons: Regis, Pernod Ricard, PERP.PA, Pernod, Alexandre Ricard, Ricard, Martell, Mumm, Pernod's, Bernstein, Trevor Stirling, it's, Helene de Tissot, Dominique Vidalon, Emma Rumney, Sherry Jacob, Phillips, Mark Potter Organizations: Ricard, REUTERS, Diageo, Thomson Locations: Lormont, Bordeaux, France, LONDON, United States, China, India, Americas, Paris, London

☆ Pernod Ricard eyes more price hikes in second half, confident on China
▼ + stars: | 2023-02-16 | by ( Dominique Vidalon | ) www.reuters.com time to read: +2 min

The world's second largest spirits group after Diageo (DGE.L) reported forecast-beating first-half profit and sales, helped by price hikes of around 10%. During the COVID pandemic Pernod Ricard and its rivals benefited from people drinking more expensive types of alcohol at home. There have been, however, growing signs the spirits industry growth was stabilising, notably in the United States, as positive effects from the pandemic fizzle out. The strong first-half reflected a 5% rise in the United States, Pernod's top market, with growth driven by strong price hikes across its portfolio. In China, first-half sales grew 4%, reflecting a strong first quarter with solid demand for Martell cognac during the Mid-Autumn festival but a soft second quarter due to COVID-19 restrictions.

Pernod Ricard India said it strongly denies the allegations of the directorate, adding that it "will continue to fully cooperate with the Indian authorities in this matter." Benoy Babu, head for international brands for Pernod India, was arrested in November and remains in jail over the case. He faces allegations of money laundering under Indian laws and violating Delhi's liquor policy rules, but has denied wrongdoing. Under the 2021 Delhi liquor policy, hundreds of store licences were awarded to private players as the city government exited the retail business in a move to liberalise trade and boost local government revenue. One Enforcement Directorate document dated Nov. 10 says: "The main motive of Pernod Ricard in cartel creation was to ensure that the retail shops of the cartel partners purchased higher quantity of Pernod Ricard brands ... in lieu of the financial assistance provided."

The customs authority says Pernod did so to evade full payment of import taxes. Pernod has been "a habitual litigant and always attempts to abuse the due process of law," the filing added, referring to some previous tax demands Pernod challenged in India. It declined further comment due to ongoing litigation and because the filing by the customs authority wasn't public. To compensate for the undervalued imports, Pernod paid "hefty" dividends to the group's holding company, Pernod Ricard in France, which also owns Chivas Brothers, the investigation found. Last week, Pernod said its India CEO, Thibault Cuny, had stepped down due to health reasons.

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