Booze brand Pernod Ricard set to toast full-year profit growth
Pernod Ricard today said it forecast strong profit growth for the full year after cashing in on boosted demand for its drinks in the third quarter.
The French booze group, which owns brands including Absolut vodka and Beefeater gin, posted sales of €1.9bn (£1.6bn) in the three months to the end of March, up 19 per cent year on year and ahead of forecasts.
It said sales would accelerate in the fourth quarter thanks to the gradual reopening of restaurants and bars worldwide, though it warned its travel sales would remain subdued due to Covid restrictions.
Pernod Ricard, which is the world’s second largest spirits group after Diageo, forecast a 10 per cent rise in profit for the full-year.
The upbeat forecast marks a turnaround for the company, which had posted declines in sales in the first and second quarter.
For the first nine months of the year sales grew 1.7 per cent to €6.9bn, with modest growth in Europe and the USA.
A decline in sales due to venue closures was partially offset by consumers splurging on Scotch and cocktail favourites such as Malibu rum, Kahlua and tequila.
However, the group’s biggest growth came from China, where sales surged 34 per cent in the first nine months.
Chairman and chief executive Alexandre Ricard hailed an “excellent” third quarter for the company.
“This confirms the strength of our business, with strong dynamism of our domestic must-win markets and good resilience throughout.”