French drinks group Pernod Ricard lifted its full-year profit target as it posted third-quarter sales above forecasts and said key markets such as the US and Russia as well as duty free had improved.
'We clearly see an improvement in the economic environment with one dark zone which is Western Europe,' CEO Pierre Pringuet said.
Pernod's comparable third-quarter sales in North and South America combined rose 3%, in Asia and the rest of the world some 10% and they were up 1% in France. But sales fell 6% in the rest of Europe.
Revenues from Pernod's 15 strategic brands in the nine months to March 31 dropped in volume by 1% but rose 3% in value thanks to a favourable product and price mix.
Best performing brands included Martell cognac with sales up 16%, Jameson whisky which was up 11%, Absolut vodka was some 9% higher and the Glenlivet scotch rose 6%. However, champagne brands Mumm and Perrier-Jouet posted declines of 9% and 11% respectively.
Mr Pringuet said he expected the positive trends to continue in the US in its fiscal fourth quarter to June.
Pernod's larger rival Diageo earlier this month said it was seeing 'green shoots' of recovery for its higher-priced products in North America and Europe.
Pernod said today that saw third quarter sales reach €1.54 billion compared with expectations of €1.45 billion. On a like-for-like basis, sales were up 16%, beating market expectations of 11%.
Pernod said it now expected 2009-2010 profit from recurring operations to rise 3%, up from a previous growth forecast of 1-3%.
