Pernod signals profit rise after sales revival

THE Paris-based drinks giant behind Chivas Brothers has reported strong growth in key international markets in its third quarter, paving the way for an increase in annual profits.

Pernod Ricard, owner of Dumbarton-based Chivas, saw sales climb by 12.6 per cent to €1.96 billion over the period, driven by growth in the Americas, Asia and Europe.

A third-quarter bounce helped sales at the company rise by 1.7% to €6.94bn in the first nine months of its accounting period.

Pernod expects sales to “accelerate” further in the fourth quarter, putting it on track to grow profits from recurring operations in the region of 10% for the current year.

However, it warned conditions in the travel retail market remain “subdued”.

Pernod flagged robust growth in key markets such as the US, China and India, as well as a “strong resilience” in Europe, in spite of Covid-related restrictions.

It highlighted a return to growth in the Americas in the third quarter, with sales rising by 10% to $592 million. Sales in the region were up 4% for the nine months at nearly €1.99bn.

Growth of 36% to €878m was recorded in Asia/rest of world in the third quarter, which helped lift the nine-month total for the region to more than $3bn, up 3%.

In Europe, the company noted the contribution of Scotch and its portfolio of speciality brands as it flagged “strong resilience” in the market.

Third-quarter sales in Europe climbed by 5% to €486m, while over the nine months sales had dipped by 3% to €1.94bn.