THE boss of Pernod Ricard has revealed the spirits giant has made “contingency plans” that would kick in should the UK depart the European Union (EU) without a Brexit deal.
As the latest talks between Prime Minister Theresa May and the leaders of the EU’s remaining 27 states ended in stalemate, Alexandre Ricard said Pernod had prepared for a no-deal Brexit outcome. He confirmed to Reuters that those plans could involve the company, one Scotland’s biggest whisky distillers through its ownership of Chivas Brothers, forward-shipping. However, he said the company had not done so yet, while repeating his call for “visibility” on the process to allow it to adapt.
Mr Ricard’s comments came as Pernod, whose brands include The Glenlivet single malt and Martell Cognac, reported a 10.4 per cent rise in organic sales to €2.4 billion in the first quarter of its current financial year. Strong growth in China, where sales increased by 27%, and India, up 34%, offset slower growth in the US, where the firm cited the effects of shipment phasing as sales grew by 2%.
Strong growth was achieved in all categories in China, Pernod reported, while it benefited in India from strong market conditions, reinforced with favourable comparisons with last year. While noting that first half sales in China would be boosted by the earlier timing of Chinese New Year, it expects sales to “normalise” in the country over the course of the full year, especially on Martell Cognac.
Mr Ricard said: “We have had a particularly good start to the year, as expected. In an uncertain geopolitical and monetary environment, we confirm our FY19 guidance of organic growth in profit from recurring operations of between 5% and 7%.”
Mr Ricard told Reuters that he was monitoring the trade war between China and the US. It has not affected demand for its products in China so far.
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