Pernod lifts earnings on high demand
FRENCH spirits giant Pernod Ricard has raised its full-year guidance after reporting a rise in profits, boosted by strong demand from Asia and France.
The owner of Absolut Vodka and Jameson Irish whiskey said underlying profits growth from recurring operations would be “close to eight per cent” in the full year to June after previously targeting a rise of around six per cent.
Underlying profits rose by 17 per cent to €1.38bn (£1.14bn) in the six months to 31 December on sales up 11 per cent to €4.61bn, benefitting from the earlier timing of Chinese New Year, which brought forward some purchases for the festival.
Asia drove most of Pernod’s growth, with the region posting an underlying sales rise of 18 per cent, driven by strong demand for Martell and Scotch whiskies in China.
In France, sales jumped 25 per cent as French suppliers and consumers stocked up at the end of 2011 ahead of a tax hike. However, Pernod cautioned that consumption in France would be depressed in the coming months as a result.
Pernod said in a statement that for the next six months it expected “continued strong dynamism for emerging markets, a gradual improvement in the US, ongoing softness in Western Europe, with continued recession in Southern Europe”.