Pernod Ricard’s First Quarter Sales Beat Forecasts
Spirits group Pernod Ricard posted a stronger-than-expected 10.4% rise in first-quarter underlying sales, helped by higher demand in China and India and despite slower growth in its main market in the United States.
Pernod, the world's second-biggest spirits group behind Britain's Diageo, however cautioned sales growth would moderate in the full year, notably in Asia.
It also warned of a slightly negative foreign exchange impact on its recurring operating profit.
For the first quarter ended Sept. 30, Pernod reported sales of 2.387 billion euros, a like-for-like rise of 10.4% that beat analysts' estimates for 7.4% like-for-like growth in an Inquiry Financial poll for Reuters.
Pernod said it benefited from strong demand in China and from a low year-ago comparison in India, where it has faced setbacks including a ban on liquor outlets.
The owner of Mumm champagne, Absolut vodka and Martell cognac said that despite an uncertain geopolitical and monetary environment, it was keeping its forecast for a 5-7% organic rise in full-year profit from recurring operations after last year's 6.3% growth.