French spirits group Pernod Ricard, the parent of Irish Distillers, expects full-year operating profit to be at the lower end of its 3 to 5 per cent growth target range on the back of flat comparable sales.

The group, which owns Absolut vodka, Malibu liqueur and aniseed drinks Ricard and Pernod, added it had suffered a 3 per cent drop in like-for-like sales in the fourth quarter.

But overall, on a reported basis, full-year sales to June 30th grew 9 per cent.

Several analysts said the market was expecting Pernod’s full-year operating profit to come at the lower end of its target but fourth-quarter sales were better than forecast.

“The growth during the fourth quarter shows that emerging markets have been able to compensate for the destocking in the US,” said one Paris-based analyst who declined to be named.

Pernod, the second-largest spirits group worldwide behind Diageo, said sales growth slowed down during the second half due to the overall decline in consumption and destocking by wholesalers and distributors.

It said sales in India and China continued to grow strongly and remained solid in France, Sweden, Australia and Canada.

However, trading suffered in Ireland, Italy, South Korea and Japan. – (Reuters)