Pernod Ricard India's Ad Spend Hits Rs 845 Crore As Revenue Grows 6.9% In FY24

In the fiscal year 2024 (FY24), Pernod Ricard India (PRI) reported a consolidated sales revenue of Rs 26,773.22 crore, marking a 6.9 per cent increase over the previous year. The growth was driven by a 20.9 per cent rise in profit, which reached Rs 1,620.58 crore.

The company had reported a 1.2 per cent hike in its advertising and promotional expenses in FY24 at Rs 845.14 crore.

PRI’s brand portfolio is robust, featuring global premium labels like Absolut, Chivas Regal and Glenlivet, alongside domestic brands such as Royal Stag, Blenders Pride and Imperial Blue.

To support its growth strategy, PRI has been making significant investments. The company recently announced a €200 million investment in a new distillery in Nagpur, Maharashtra. The facility is set to enhance domestic production and boost PRI's export capabilities, particularly for its flagship Indian single malt whiskey, Longitude 77.

In contrast, United Spirits Limited (USL) faced a more challenging fiscal year. USL reported a 6.5 per cent drop in revenue to Rs 26,018 crore in FY24. The decline is attributed to increased competition, shifting consumer preferences and the broader economic environment.

To streamline operations and focus on premiumisation, USL sold 32 of its brands to Inbrew Beverages in FY23. The move is aimed at strengthening its core portfolio and improving profitability.

On the taxation front, PRI’s total tax expenses rose by 22.33 per cent to Rs 563.42 crore in FY24, primarily due to higher income and increased tax rates. The company also paid Rs 14,208.22 crore in excise duties to state governments, reflecting an 8.35 per cent year-on-year increase.

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