Pernod Ricard said its sales growth accelerated sharply in the third quarter so it now expects profit growth for the full year to be at the top of its previous guidance despite warning of a slower final quarter.
The owner of Irish Distillers, Pernod said its sales growth, which beat market expectations, reflected strong demand in China for its Martell cognac during the Chinese New Year festivities in February.
The strong quarterly growth was also driven by Jameson Irish Whiskey and the return to growth of its Chivas brand.
The group said the fourth quarter would be weaker due to tight management of Martell cognac inventories and reduced shipments to China to ensure more sustained growth globally.
The recovery of the Absolut vodka brand in the US - which makes 20% of the US business - was also taking longer than expected, added the company.
Pernod, the world's second-biggest spirits group after Britain's Diageo, said it now expected organic growth in profit from recurring operations of around 6% for the full year ending June 30, after giving a range of 4-6% in February.
The group said it would also progressively increase dividends over the next three years.
Finance chief Gilles Bogaert said that Pernod Ricard, which has more leeway for acquisitions given the decline in its debt, remained committed to bolt-on deals although it was also open to bigger-scale opportunities.
The company posted sales of €1.977 billion in the three months to March 31, a 9.3% rise on a like-for-like basis, and a sharp acceleration from 4.6% growth in the second quarter.
Pernod noted that a rise in the euro would have a negative impact of around €200m on its full year profits - up from a previous estimate of €180m.
Earlier this week, concerns over a strong euro had also weighed on the shares of Pernod's rival Remy Cointreau, even though Remy reported higher sales.
Pernod's nine-month sales were bolstered by a 19% jump in China sales during the Chinese New Year, as well as robust growth in India and higher sales in the US - Pernod's biggest market.
