Pernod Ricard, the world's second-largest wines and spirits group, said yesterday that nine-month sales rose 7.2 per cent helped by strong European sales, Chinese New Year demand for Martell cognac and a pick-up in its wines business, sending its shares higher.
Jameson, which is one of the company's 15 "strategic brands", recorded sales growth of 12 per cent in volume terms.
The stronger-than-expected sales in the nine months to March 31st were €4.9 billion.
Third-quarter sales rose 6.8 per cent to €1.39 billion. Stripping out negative currency effects of 4 per cent and a negative impact of 0.9 per cent from changes in the group's structure, Pernod said underlying third-quarter growth was 12.2 per cent.
"These very good results are in line with our expectations and indicate favourable prospects for the second half of the year," chairman Patrick Ricard said in a statement.
Analysts said bad news on currencies was balanced by the fact that underlying sales - up 10.3 per cent in the first nine months - were growing faster than the company's initial target of 4 to 6 per cent, revised in January to more than 6 per cent. Managing director Pierre Pringuet said analysts were probably wrong-footed by the company's strong third quarter in Europe.
Mr Pringuet reaffirmed Pernod Ricard's interest in buying Sweden's Absolut vodka and securing the rights to Russia's Stolichnaya vodka, which it sells outside the country. "The brands are absolutely complementary," he said.
- (Reuters)
