French spirits maker Pernod Ricard has today forecast modest profit growth in its current financial year after improving demand in Asia helped sales beat forecasts in the first quarter.
The world's second-biggest spirits group behind Diageo said it remained cautious for the current year, predicting a gradual improvement in sales in an environment that it said would remain "difficult".
Pernod's brands include Jameson Irish whiskey, which saw net sales rise by 9% in the three month period. Other well known brands include Absolut Vodka, Glenlivet Scottish whisky and Mumm champagne.
Pernod forecast growth in underlying profit from recurring operations of between 1-3% for the year ending June 2015.
That would compare with profit growth of 2% achieved in the 2013/14 fiscal year.
Pernod relies on Asia for about 38% of its sales and 43% of its operating profit.
Like its rivals, including smaller peer Remy Cointreau, it has been hurt by a government clampdown on luxury gifts in China, in addition to the slowdown in economic growth in the country.
Diageo and Remy have, however, forecast improving sales this year as they navigate past problems in China.
Pernod, the owner of Mumm champagne, Absolut vodka and Martell cognac, said revenue for the first quarter ended September was €2.037 billion, a like-for-like rise of 2% and a rebound from a 2% decline in the fourth quarter of 2013/14.
The company-compiled consensus of analysts was for underlying sales growth of 1.5% in the quarter.
In Asia, like-for-like sales rose 4% in the quarter while in America, where it makes 27% of group sales, revenue rose 3%.
In Europe, where Pernod makes 35% of revenue, sales were still down 1%.
