Pernod Ricard ups ad spend to Rs 845 cr in FY2024

In the fiscal year 2024 (FY24), Pernod Ricard reported a consolidated sales revenue of Rs 26,773.22 crore, a 6.9% increase compared to the previous year. This growth was fueled by a 20.9% rise in profit to Rs 1,620.58 crore.

PRI has a strong portfolio of brands, which includes both global premium brands like Absolute, Chivas Regal, and Glenlivet, as well as popular domestic brands such as Royal Stag, Blenders Pride, and Imperial Blue.

To support its growth ambitions, PRI has been investing heavily in its operations. The company recently announced a €200 million investment in a new distillery in Nagpur, Maharashtra. This state-of-the-art facility will not only boost domestic production but also enhance PRI's export capabilities, especially for its flagship Indian single malt whiskey, Longitude 77.

While PRI has been on an upward trajectory, USL has experienced some challenges. In FY24, the company reported a 6.5% decline in revenue from operations to Rs 26,018 crore. This downturn can be attributed to various factors, including increased competition, changing consumer preferences, and the impact of economic conditions.

To streamline its operations and focus on premiumization, USL divested 32 brands to Inbrew Beverages in FY23. This strategic move aims to strengthen the company's core portfolio and improve profitability.

In terms of taxation, PRI's total tax expenses increased by 22.33% to Rs 563.42 crore in FY24. This rise can be attributed to higher income and increased tax rates. The company also paid Rs 14,208.22 crore in excise duty to state governments, an 8.35% increase year-over-year.

Despite the challenges faced by USL, the Indian spirits market remains highly competitive and dynamic. Both companies are expected to continue investing in brand building, innovation, and distribution to maintain their market positions and drive future growth.