French drinks group Pernod Ricard said today that sales trends in China, its second-largest market, were gradually improving.
This was thanks to a positive performance during the country's New Year celebrations.
Like rivals Diageo and Remy Cointreau, Pernod has been hit by a government crackdown on luxury gift-giving and personal spending by civil servants in China, as well as by slowing economic growth in the world's second-biggest economy.
Sales of Pernod Ricard products from wholesalers to retailers in China rose 7% year-on-year by volume in the three months from December to February, the company said.
Martell sales volumes over the period jumped 13% but whiskey sales volumes were down 6%, Pernod said. The company's whiskey brands include Jameson Irish Whiskey.
Year-to-date Pernod Ricard sales volumes from wholesalers to retailers in China were up 1%, which the group said was consistent with its guidance for full year 2014/15 organic growth.
The world's second biggest spirits group by sales after Britain's Diageo makes 12% of sales and 15% of profit in China.
Asia now accounts for 39% of sales and 42% of annual profit for Pernod Ricard.
In February, Pernod Ricard said that its sales in Asia were flat in the first half ended December 31, hit by a 16% slump in Chinese sales.
