Pernod Ricard Eyes Mid-Term Revenue Growth Backed by Data

By Joshua Kirby

Pernod Ricard SA on Wednesday set out its targets for the coming years, aiming for steady revenue growth backed by consistent promotional spend and the use of data.

The French distiller is targeting annual organic top-line growth of 4%-7%, and hopes to approach the upper end of the range, it said ahead of a capital-markets event Wednesday. Pricing will be a key part of this growth, boosted by the use of the company's proprietary predictive digital tools, it said.

Last fiscal year, Pernod recorded 9.7% sales growth to 8.82 billion euros ($9.44 billion), though this was against a soft base following a fall in revenue the previous year amid the worst effects of the global pandemic.

Pernod Ricard will meanwhile work to improve operational efficiency ahead, with disciplined expansion in structure costs below the level of top-line growth, the company said. Advertising and promotional spend will be kept at a consistent rate of around 16% of sales.

The planned top-line growth, if met, should entail rising operating leverage at around 50-60 basis points a year, the maker of Absolut vodka and Jameson whiskey said.

The goals are part of Pernod Ricard's ambition to become a "conviviality platform" centered around the use of data, the company said. "For Pernod Ricard, the end goal is to spread conviviality by leveraging data," Chief Executive Alexandre Ricard said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

June 08, 2022 01:52 ET (05:52 GMT)

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