Pernod Ricard profits up on strong Chinese cognac demand
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The group said Chinese sales rose 4 per cent in the six months to end-December, up from 1 per cent growth in the first quarter, with sales of Martell cognac up 10 per cent and 7 per cent globally.
Luxury cognac brand Cordon Bleu also showed some recovery, but Scotch whisky sales continued to suffer amid the clampdown by the Chinese government on extravagant spending.
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Hide AdPernod Ricard said sales growth in India, one of its key markets, slowed to 3 per cent in the first half as an Indian government ban on high-value banknotes held back local whisky consumption.
Group profits rose 4 per cent to €1.5 billion (£1.28bn) on sales also up 4 per cent at 5.06bn euros. Pernod said it was keeping its guidance of a rise of 2 to 4 per cent in annual profits for the year to end-June 2017.
“We are not changing our guidance despite this headwind in India which is offset by a better than expected performance in China,” Alexandre Ricard, group chief executive, commented.
In the United States, where Pernod’s sales lifted 5 per cent, Jameson Irish whiskey, continued to grow at a double-digit rate and 20 per cent worldwide.
Ballantine’s Scotch whisky sales climbed 6 per cent, but the Chivas Regal brand dipped 1 per cent and The Glenlivet malt whisky revenues were flat.