Liquor maker Pernod Ricard India has reported a significant milestone in its financial performance for the fiscal year 2022-23. The company has achieved a remarkable revenue of Rs 25,000 crore, marking a 10% growth compared to the previous year. This achievement highlights Pernod Ricard India’s strong position in the Indian market and its ability to navigate challenges and capitalise on opportunities.
While Pernod Ricard India experienced robust revenue growth, it also faced a decline in profit during FY23. The company’s profit decreased by 8% to Rs 1,340.22 crore, compared to Rs 1,457.98 crore in FY22. Despite this decline, Pernod Ricard India’s revenue growth demonstrates its ability to generate substantial sales in the highly competitive liquor industry. Its strong revenue performance can be attributed to its diverse portfolio of over 200 premium brands, including popular names like Absolut, Chivas Regal, and Glenlivet. Additionally, the company’s commitment to fulfilling its tax obligations is evident, as it paid a total excise duty of Rs 13,112.61 crore in FY23, a 2% increase from the previous year. It deposited a total of Rs 19,002 crore in taxes, which accounted for approximately 76% of its revenue from operations.
Pernod Ricard India holds a strong position in the Indian market, which is the second-largest market globally for the company, following the United States. The company’s Managing Director, Jean Touboul, expressed optimism about the future, expecting a threefold jump in sales in India by the next decade. Touboul cited favourable macroeconomic conditions, a growing premiumization trend in Indian-made foreign liquor (IMFL) and imported brands, and the country’s demographic dividend as key drivers for this anticipated growth.
RTM Watch’s Take
Pernod Ricard India’s impressive revenue growth in FY23 showcases its ability to thrive in a competitive market. Despite the decline in profit, the company’s strong sales performance indicates its resilience and adaptability. With a diverse portfolio of premium brands and a strategic focus on growth, Pernod Ricard India is well-positioned to capitalise on India’s evolving consumer preferences and continue its upward trajectory in the coming years.
