French spirits giant Pernod Ricard posted Thursday a 13-percent jump in its annual net profit as the owner of Absolut vodka, Jameson whiskey and Beefeater gin raised prices.
The group, whose other brands include Malibu rum, Martell cognac and Pierre-Jouet champagne, reported a profit of €2.26 billion (£1.94bn) for its 2022-2023 fiscal year.
Its sales also rose by 13 per cent to €12.1bn, but they were only up one percent in terms of volume. The group also benefited from favourable foreign exchange rates.
Food and drink companies have raised prices as inflation soared last year following Russia’s invasion of Ukraine. Consumer prices had already been rising after countries emerged from Covid restrictions.
But inflation has eased in recent months as central banks have hiked interest rates in efforts to rein in consumer prices.
“Pernod Ricard once again delivered a very strong full-year performance, achieving double-digit broad-based growth in sales and earnings despite a volatile environment,” chief executive Alexandre Ricard said in a statement.
“The relevance of our growth strategy, the desirability of our brands and the unwavering commitment and agility of our teams enabled us to gain share in most markets and strengthen pricing,” he said.
The group reported sales growth in every region and strong performances by its strategic international brands, led by Scotch drinks, Martell, Jameson and Absolut.
The company said it would stick to its outlook of net sales growth of four to seven percent between fiscal years 2023 and 2025.
“While the environment in FY24 (fiscal year 2024) remains challenging, I am confident in Pernod Ricard’s ability to deliver on its medium-term objectives,” Ricard said.