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French wine and spirit major Pernod Ricard today said demonetisation in India and slow business in China affected its global sales in the third quarter ended March 31.
The company further said ban on liquor sales near highways in India could impact its sales further in the first half of FY18.
Sales in Asia-RoW (Rest of world) declined 2 per cent "due to CNY (Chinese New Year) and final impact of demonetisation in India" during the (January-March) quarter, the company said in a statement.
For the nine months ended March 31, 2017 Pernod Ricard said its sales in India grew by only one per cent "with temporary growth deceleration due to certain regulatory changes".
The company further said "Q2 and Q3 (were) impacted by demonetisation" and the ban of liquor near highways would "impact sales mainly in Q4 FY17 and H1 FY18."
Strategic local brands were flat due to the temporary slowdown on Indian whiskies in the nine months, it added.
Pernod Ricard, which sells brands as Glenlivet, Absolut Vodka, Imperial Blue, Royal Stag and Blenders Pride in India, said it has retained "leadership in premium local and international whisky" segment in the nine months.
The company, which follows July-June financial year, today reported 3 per cent increase in sales at 1,987 million Euro for the Q3 of FY17.
"Q3 (was) slightly softer quarter, as expected, mainly due to phasing of Chinese New Year," the company said.
For the nine months of FY17, the company posted sales of 7,047 million Euro with growth of 4 per cent.
Commenting on the sales performance, Pernod Ricard Chairman and CEO Alexandre Ricard said: "In an uncertain environment, our strategy is consistent and driving results, in particular in terms of diversifying the sources of growth".
In Asian markets China is improving and is now stable, the company said. It further said sales in the Korean market marked with "continued strong decline".
While Africa Middle East had "growth deceleration due to macroeconomic and geopolitical context" in the nine months period.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)