Pernod Ricard stopping all exports of its international brands to Russia led to a fall in sales for Scotch whisky maker Chivas Brothers during its latest financial year.
The Scotland-headquartered company has revealed its net sales fell by 1.6 per cent in the 12 months to the end of June 2024 off the back of two record years.
Chivas Brothers said that its sales fell by six per cent during the first half of the financial year but grew by five per cent in the second six months.
The company added that “favourable pricing movements across all strategic brands offset volume slowdown”.
Excluding the loss of the Russian market, Chivas Brothers said its net sales performance for its latest year rose by 1.4 per cent.
The company, which is part of the wider Pernod Ricard Group, includes the Chivas Regal, Ballantine’s, The Glenlivet and Royal Salute brands.
It is also responsible for other single malt Scotch whiskies including Aberlour, Scapa, the Secret Speyside collection and Longmorn.
The Pernod Ricard Group’s brands also include the likes of Havana Club, Absolut, Beefeater and Jameson.
Chivas Brothers has not released actual turnover or profit figures for its latest financial year.
According to documents filed with Companies House, Chivas Brothers posted a pre-tax profit of £309.1m for the year to June 30, 2023, up from £220.6m. Its revenue increased from £1.1bn to £1.3bn over the same period.
Chivas Brothers chairman and CEO, Jean-Etienne Gourgues. Credit – Chivas Brothers
Chivas Brothers ‘lapping two historic years’
Chivas Brothers chairman and CEO, Jean-Etienne Gourgues, said: “Our FY24 performance demonstrates resilience and stability, underpinned by our impactful premiumisation strategy which delivered an upward trajectory in the second half of this fiscal (January – June 2024).
“We’re lapping two historic years, a complex geopolitical landscape and ever-changing consumer trends, yet still delivering on our strategic vision, owing to our broad and balanced footprint.
“We are also leading from the front when it comes to sustainability in our industry, making significant investments that ensure we can meet our ambitious environmental targets while increasing capacity to meet the global demand for Scotch whisky.”