Sales of Jameson whiskey rise

Sales of Jameson whiskey rose 12 per cent in the year ending June 30th as spirits group Pernod Ricard announced a 4 per cent …

Sales of Jameson whiskey rose 12 per cent in the year ending June 30th as spirits group Pernod Ricard announced a 4 per cent rise in  operating profit.

Pernod, the world's second largest spirits group after Diageo, said today it would focus on cutting debt and on boosting marketing spend this year to bolster consumption as the drinks market gradually recovers.

"Our performance over the 2009-10 financial year was a strong and sound one," chief executive Pierre Pringuet said.

"Our priorities for the 2010-11 financial year remain the development of our premium strategic brands, a continuing strong marketing investment level, and the reduction in group debt," he added.

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Paris-based Pernod, which also produces Glenlivet and Absolut, said full-year recurring operating profit was €1.795 billion.

This was a reported decline of 3 per cent. Excluding currencies and disposals, the rise was 4 per cent, at the high-end of 3-4 per cent guidance given last month.

Pernod, which also owns the Mumm and Perrier-Jouet champagne brands, said full-year comparable sales rose 2 per cent on a comparable basis but dropped 2 per cent on a reported basis, in line with its July guidance.

Both Pernod and Diageo suffered in the downturn as consumers cut back on spending and moved to cheaper drinks and are now benefiting from an emerging market-led recovery in demand.

Last week, Diageo forecast slightly higher profits growth this year driven by developing markets but said the strength of the economic recovery was variable and its rate of improvement would depend on it.

Pernod shares closed at €62.74 yesterday, valuing the company at €16 billion.

Reuters