Orangina lifts Pernod to £219m

PERNOD Ricard, the world's third-largest wine and spirits company, today unveiled an 84% rise in net profits to e358m (£219m) for 2001 after an exceptional profit of e220m from the sale of Orangina.

The French company, which owns Jacob's Creek wine and Jameson and Bushmills Irish whiskey, saw turnover in its spirits and wine division rise by 9.5% across the world as it shifted 46m cases of spirits and 17m cases of wine.

Jacob's Creek, the Australian wine brand, passed the five million cases mark for the first time with new premium brands Jacob's Creek Reserve and Jacob's Creek Limited Reserve launched. Operating profits from wine and spirits increased by 14% to e344m while the operating margin moved up slightly to 17.9%. Sales in fruit preparation, Pernod's other main business, dipped 10% to e1.22bn following disposals.

Overall group operating profits were up 7% at e451m on sales of e4.6bn and do not take into account the benefits of the Seagram deal. The final go-ahead for the £5bn acquisition was granted in December last year, more than 12 months after the deal was struck, but Pernod said: 'The Seagram deal did not have a significant impact on the year's accounts. The operational integration progress came broadly into effect at closing.'

The long delay meant sales slipped in the second half of 2001 but Pernod gave an upbeat forecast, heralding a 'twofold increase in operating profit for spirits and wine, which will allow the group to reach in 2002 the objectives set up for 2003: earnings per share up 50% compared with 1999'.

The deal brought Pernod 17 extra brands including Martell Cognac, Seagram's Gin and Chivas Regal whisky, giving it a major market in the United States. Whisky makes up 28% of spirits sales, followed by vodka and gin which claim another 23%, while the traditional aniseed flavoured drinks of France are in third place with 19%. Rums, including the Cuban national drink Havana Club, account for 8%. The 2001 dividend goes up 12.5% to e1.8.