Pernod Ricard eyes 17% annual profit growth after Q3 sales beat

div classBodysc17zpet90 cdBBJodivpBy Dominique Vidalonp

pPARIS Reuters French spirits group Pernod Ricard said on Thursday strong demand in its key U.S., Chinese and European markets drove a 20 jump in thirdquarter organic sales, beating analysts forecasts by a strong margin.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pPernod Ricard, which owns Mumm champagne, Absolut vodka and Martell cognac, however, said it expects softer sales in the fourth quarter due to COVID19 disruptions in China, gradual normalisation in U.S. business and the Ukraine conflict.p

pDespite an increasingly challenging environment, Pernod Ricard forecast organic growth of 17 in profit from recurring operations for its financial year ending June 30, in line with current market consensus for 16.9 growth.p

pResilient consumption by people staying at home, the reopening of bars and restaurants and a continuing recovery in travel retail would fuel strong fullyear sales growth across regions, with some operating margin expansion, it added.p

pPernod, the world‘s secondbiggest spirits group after Diageo, reported sales of 2.447 billion euros 2.57 billion in the three months ended March 31 – up 20 on a likeforlike basis, beating analysts’ expectations of 14.3 growth.p

pThis reflected a 20 rise in sales in Europe despite some deceleration in March notably due to the impact of the Ukraine conflict, it said.p

pIn the United States, sales rose 23 in the quarter, lifted by solid demand for Jameson whiskey, Malibu, Kahlua liquors and Martell cognac. Broadbased price increases in early February and innovations such as Jameson Orange also helped U.S. sales.p

pIn China, sales in the third quarter grew 8, slowing from 14 in the first half of the year, with a softer Chinese New Year performance affected by COVID disruptions.p

pPernod Ricards fiscal year starts on July 1.p

p1 0.9507 eurosp

p Reporting by Dominique Vidalon Editing by Sudip KarGupta and Sherry JacobPhillipsp

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