Business Standard

Strong sales in China, India drive Pernod Ricard profit growth

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Reuters PARIS
By Dominique Vidalon
PARIS (Reuters) - French spirits maker Pernod Ricard on Wednesday said sales and profit growth accelerated in full year 2017/18, driven by strong demand in China and India, as well as robust sales in the United States, its top market.
The maker of Martell cognac and Mumm champagne handed investors a 17 percent dividend hike.
For the year ahead, Pernod - the world's second-biggest spirits group behind Britain's Diageo - forecast further profit growth in spite of an uncertain geopolitical and monetary climate. It gave no further details.
Pernod Ricard predicted a "very strong" first quarter, saying it would benefit from a low comparison base in India where it has faced setbacks including a ban on liquor outlets.
It also forecast a boost in the July-September period from an earlier Mid-Autumn Festival in China, where it banks on a thirst for premium drinks from a fast rising middle-class.
Pernod Ricard forecast underlying profit growth from recurring operations of between 5 percent and 7 percent for the full year ending June 30, 2019.
This would compare with the 6.3 percent rise achieved in the 2017/2018 financial year, when profits came in at 2.358 billion euros ($2.70 billion), - in line with an average forecast of 2.36 billion euros in an Inquiry Financial poll for ThomsonReuters.
Sales growth for the 2017/18 full-year accelerated to 6 percent from 3.6 percent the previous year, spurred by a 17 percent jump in China, 14 percent in India and 4 percent in the United States.
($1 = 0.8744 euros)
(Reporting by Dominique Vidalon; editing by Richard Lough)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 29 2018 | 11:34 AM IST

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