Irish Distillers owner Pernod Ricard said today it expected 10% organic profit growth in fiscal year 2020/21 after strong demand in its key US and Chinese markets helped the French spirits group beat third quarter sales forecasts.
The owner of Jameson whiskey, Mumm champagne, Absolut vodka and Martell cognac expects sales to accelerate in the fourth quarter as bars and restaurants gradually reopen.
But travel retail is expected to remain subdued due to limited passenger traffic.
Pernod Ricard's fiscal year starts on July 1.
Pernod, the world's second-biggest spirits group after Diageo, reported sales of €1.955 billion in the three months to March 31 - up 19.1% on a like-for-like basis and beating analysts' expectations of 11.3% growth.
That performance marked a return to sales growth after the previous two quarters showed a decline.
Sales for the first nine months reached €6.941 billion, an organic growth of 1.7%.
Sales in the US continued to grow at a mid-single digit pace, as stuck-at-home consumers splurged on Glenlivet scotch and American whiskeys while a cocktail craze boosted demand for Malibu rum and Kahlua liquors and tequila.
US sales of Jameson were softer in the third quarter but this compared to strong year-ago sales due to Covid-related stockpiling and the launch of Jameson Cold Brew.
Pernod's finance chief Helene de Tissot told Reuters that Jameson's underlying sales trend remained "unchanged".
In China, Pernod Ricard recorded triple-digit growth during the third quarter, boosted by an "excellent" performance during the Chinese New Year festivities, with very strong demand for Martell cognac. This meant the group was able to raise cognac prices by 3-4% in April in China, de Tissot said.
In India, Pernod's other key market after the US and China, all key brands showed double-digit sales growth in the third quarter but a resurgence of Covid-19 cases in March and April was leading to new restrictions.
The group's performance was flattered somewhat by easier comparisons with last year, notably in China where Covid-19 restrictions that shut bars and clubs were largely implemented in March 2020.
Pernod Ricard also today set an interim dividend of €1.33.
