Jameson sales help Pernod to distill revenue of €1.7bn

Pernod Ricard, the owner of Irish Distillers, which makes the Jameson, Midleton, and Powers whiskeys, reported strong third-quarter sales.

Analysts had under-estimated the desire for premium brand drinks in the rapidly expanding emerging economies. Consumers continued to buy more expensive spirits and demand increased in emerging markets for Pernod Ricard’s large suite of drinks.

Net sales of Jameson rose 17% and its overall volume of sales grew by 13%.

The Paris-based drinks company’s overall organic revenue — which excludes the effect of acquisitions, disposals and currency fluctuations — rose 3% in the quarter to Mar 31.

Investec Plc analysts Martin Deboo and Gideon Adler said that Pernod was experiencing strong growth from the emerging market economies. “Strong momentum in emerging markets, which continued to grow double-digit, and modest growth in developed markets,” they said in an investment note.

Pernod’s main brands, including Martell cognac, and increased “relative significance” of premium spirits helped boost sales in the third quarter.

Total revenue rose to €1.7bn. Excluding effects of the French tax increase and an earlier Chinese New Year, third-quarter organic growth would have been 8%.

Pernod, which sells spirits including Absolut vodka and Chivas Regal whisky, is among companies tapping sales growth in emerging economies including China and India to offset tough markets in the US and Europe. Nine-month sales rose 17% in emerging markets including China and India, compared with a 3% advance in mature markets.

Pernod also announced that it signed a €2.5bn revolving credit facility with 25 banks to refinance debt from its 2008 acquisition of Absolut vodka.