Pernod Ricard profits show 18% rise

PERNOD Ricard, the owners of Irish Distillers and makers of Jameson Whiskey, said f irst-half profits increased by 18%.

The world’s second-largest liquor maker also said net income for the six months ended December 31 climbed to €588 million from €500m a year earlier.

In that time Jameson Whiskey, produced in Midleton, continued to do well internationally for the group, achieving a volume increase of 16%.

In Ireland, Jameson performed strongly and gained share in both the whiskey and the overall spirits market, in the half year, according to Pernod.

The company said its overall annual operating profit will grow at least 12%, and it pledged to spend more on advertising.

Last month Pernod said its first-half operating profit rose 15% to €966m, while sales climbed 5.9% to €3.71 billion.

“It’s good news,” said Laetitia Delaye, an analyst at Landsbanki Kepler in Paris, who has a “buy” rating on Pernod shares.

“The management is extremely confident. They are so confident they even plan to further increase advertising spending, which should mitigate a potential slump in consumption in the second half of the fiscal year.”

Pernod shares rose €1.43, or 2%, to €72.37 yesterday in Paris, the biggest gain in France’s CAC 40 index.

The stock has dropped 7.5% since the start of this year following concern that demand is waning in the US.

Managing director, Pierre Pringuet said: “We were able to increase profit through sales growth around the globe and price increases.”

Operating profit had “double-digit” growth in all geographical zones as customers preferred pricier brands, he said.