Pernod Ricard raises its profits’ sights

● Scotch whisky giant forecasts annual rise in earnings of 4-6%

slice €180 million off annual operating profit, well up on the previously estimated hit of €125m.

Among Pernod Ricard’s brands, Jameson Irish whiskey volumes rose 11 per cent, Ballantine’s and The Glenlivet were both up 3 per cent, and Chivas Regal 2 per cent. Martell cognac volumes lifted 8 per cent, Malibu rose 5 per cent, Absolut vodka 3 per cent and Beefeater gin 1 per cent.

One analyst commented: “This is a very decent performance by Pernod Ricard across the board virtually. All the strategic brands continued the growth seen in the previous 12 months. The strong performance in China was noteworthy, given the adverse Chinese New Year phasing. The 21 basis point rise in profit margin at the group was also welcome. On most fronts, then, things look in pretty good order for future progress.”

Pernod Ricard said its “strategic local brands” portfolio moved ahead, partly due to Seagram’s Indian whiskies. It added that “strategic wines also accelerated due to Campo Viejo’s momentum”.

On a geographical earnings breakdown, profits in Asia/ Rest of the World edged down 1 per cent to €628m; profits lifted €40m to €445m in Europe; and fell 9 per cent to €423m in the Americas.