French wine and spirits group Pernod Ricard today reported a first-half fall in profit and sales despite strong performances in China and India. The company owns Irish Distillers.
The Irish business said that sales of Jameson Whiskey worldwide grew by 7% in terms of value over the six-month period.
But Irish Distillers said the Irish market 'declined dramatically' due to a weak economy, a fall in consumer confidence and a surge in cross-border shopping for alcohol.
It said the excise reduction announced by the Government in the Budget did have a positive effect on consumer spending and sentiment and reduced the growth in cross-border trade.
Irish Distillers also said West Coast Cooler sales grew at an annual rate of 91% in the six months.
Pernod Ricard, the world's number two drinks group after Diageo said net earnings in the six months to December were down 2% at €604m, well below market expectations of €678m.
Pernod Richard reported a 10% decline in sales to €3.7 billion but said it was sticking to its yearly target of growth of 1-3% in core operating earnings.
It said its operations in emerging market countries, notably China and India, remained robust, in contrast to a more challenging environment in western Europe and the US.
The company said that profits from recurring operations in Europe fell by 18%, reflecting a difficult situation overall, in particular in Spain, the UK and Ireland.
