Spirits group Pernod Ricard has today posted a stronger-than-expected 5.7% rise in first-quarter underlying sales.
The company, which owns Irish Distillers, said it was helped by accelerating demand for its Martell cognac and Chivas whisky in China, and by robust growth in its main US market.
Pernod brands include Mumm champagne, Jameson Irish Whiskey and Absolut vodka and it is the world's second-biggest spirits group behind Diageo,
It said in an environment that remained uncertain, it was keeping itsforecast for a 3-5% rise in full-year profit from recurring operations after last year's 3.3% growth.
For the first quarter ended September 30, Pernod Ricard reported sales of €2.29 billion, marking a like-for-like rise of 5.7% and above analysts' estimates for 3.4% like-for-like growth.
Pernod said disruption from a ban on alcohol sales near highways in India, its second largest market, continued to weigh on sales but added this was now easing off.
Sales in India rose 2% in the quarter, having previously slowed down to 1% in full year 2016/17 from 12% growth in 2015/16.
Pernod also reiterated that a gradual improvement in its performance was expected from the second quarter.
In China, sales rose 15% in the quarter as growth accelerated in all product categories and notably demand for Martell cognac. Chivas whisky also returned to growth.
The group, however, cautioned that because the Chinese New Year was due on February 16, 2018, three weeks later than in 2017, this would negatively impact its second quarter.
In the US, sales rose 4%, driven by double-digit growth for Jameson whiskey but Absolut vodka was still in decline in a competitive environment.
