PARIS, June 8 (Reuters) – Pernod Ricard said on Wednesday it was banking on digital initiatives, including the use of data, and its portfolio of high-end brands to accelerate medium-term sales growth.
The world’s second-largest spirits group behind Diageo, Pernod Ricard said it is aiming for annual organic sales growth in the upper end of a 4-7% range in the medium term.
The group, which includes Martell cognac, Mumm champagne and Absolut vodka among its brands, reiterated its objective of increasing its operating margin by 50 to 60 basis points per year, provided that it can achieve annual organic growth in sales of 4 to 7% in the medium term.
Pricing will be key, bolstered by the use of data to predict customer habits and industry trends, the company said in a statement.
Pernod Ricard, which is holding a “capital market day” later in the day on Wednesday to detail its strategy, has also pledged to improve its operational efficiency and to maintain advertising and promotional expenditure at 16% of sales.
“Today, for many companies, the main objective is to exploit data and digital. For us, Pernod Ricard, our main objective is to develop user-friendliness (..) by leveraging data and digital” said Alexandre Ricard, CEO, in a statement.
During the financial year ended June 30, 2021, Pernod Ricard recorded organic sales growth of 9.7% and increased its operating profit margin by 213 basis points, thanks to a rebound in demand for its spirits high-end in the United States and China after the COVID pandemic.
(Report Dominique Vidalon; French version Augustin Turpin, edited by Kate Entringer)