Jameson whiskey back to sales growth as owner Pernod looks to 10% earnings rise as Covid eases

The company's shares have rebounded 11% since the start of the year as investors anticipate the reopening of its major markets as vaccines are rolled out

Pernod said many of its so-called international brands, which include Jameson, Martell, Malibu and Glenlivet, returned to growth helped by US sales and 'an excellent' Chinese new year.

A pick-up in global sales of Jameson whiskey has helped Pernod Ricard return to growth in the latest few months as the spirits and wines giant looks to a strong recovery as the Covid-19 restrictions are lifted worldwide. 

Pernod said many of its so-called international brands, which include Jameson, Martell, Malibu and Glenlivet, returned to growth helped by US sales and "an excellent" Chinese new year in the most recent quarter, although Absolut and some other brands continue to be affected by the slump in tourist and business travel.

For the three months to the end of March, Pernod posted global sales of €1.95bn, an increase of more than 19%, which bettered analysts' expectations.

The shares, which rose by more than 1.5% in the latest session, have now rebounded 11% since the start of the year as investors anticipate the reopening of its major markets as vaccines are rolled out. 

World's number two spirits maker

The company is the world's number two spirits maker after Diageo and said it now expected earnings to rise 10% for its financial year that runs to the end of June. 

For the first nine months, it posted a small increase in sales to more than €6.9bn, boosted by the US, in particular for many of its brands.

US sales of Jameson were softer in the third quarter but this compared to strong year-ago sales due to Covid-related stock purchases by households and the launch of Jameson Cold Brew. 

Finance chief Helene de Tissot said Jameson's underlying sales trend remained "unchanged".

Chairman and CEO Alexandre Ricard said the company had had "an excellent" third quarter.

"We expect our sales to accelerate" in the fourth quarter and anticipated a 10% uplift in underlying  profit for the current financial year after a boost from US and Chinese markets, he said.