The second half of the fiscal year (January to June 24) is expected to witness continued strong growth in India
Pernod Ricard reported a 4 per cent growth in sales during the first half of the current financial year. The company’s fiscal year follows the July to June cycle and its latest earnings statement highlights the robust market demand for spirits in India.
Pernod Ricard, whose global portfolio includes brands like Jameson, Absolut and The Glenlivet, experienced very strong growth in the Indian market. International brands showed impressive performance during the period, contributing to the overall positive sales figures. Additionally, Pernod Ricard’s Indian whisky portfolio, including brands such as Blenders Pride, Imperial Blue and Royal Stag under the Seagram’s umbrella, reported over 4 per cent growth in sales.
The second half of the fiscal year (January to June 24) is expected to witness continued strong growth in India. India holds a significant position for Pernod Ricard, being the second-largest market globally for the company, trailing only behind the US.
The company had an ‘acceleration in Q2 net sales against easing comparables’, according to the earnings statement.
Despite facing a global decline in sales by 7 per cent to 6.59 billion euros during the first half of FY24, Pernod Ricard experienced an encouraging trajectory in India. The Indian market contributed 11 per cent of the company’s global net sales during this period, establishing itself as the second-largest contributor after the US, which accounted for 19 per cent.
Pernod Ricard’s premium portfolio, featuring brands like 100 Pipers, Chivas Regal and Absolut, played a pivotal role in driving high-single-digit pricing across regions. This positive pricing trend, however, was counterbalanced by lower volumes and an adverse market mix.
Pernod Ricard India has already crossed the impressive milestone of Rs 25,000 crore in consolidated revenue from its operations in the financial year that ended on March 31, 2023. The local unit expects India to become a leader in the next 10-15 years, outpacing the US market. The company anticipates tripling its sales in the Indian market by the next decade, buoyed by favourable macroeconomic factors, a demographic dividend and an increasing trend towards premiumisation in Indian-made foreign liquor (IMFL) and imported brands.
