Jameson whiskey maker Pernod Ricard reports surge in sales

Pernod reported sales of almost €2.45bn in the three months to the end of March.

The company forecast organic growth of 17% in profit from recurring operations for its financial year ending June 30.

French group Pernod Ricard — which makes Jameson whiskey — posted a forecast-beating 20% jump in third-quarter sales, but said that Covid-19 measures in China, war in Ukraine, and a normalisation of its business could mean a softer fourth quarter. 

Pernod, the world's second-biggest spirits group after Diageo, reported sales of almost €2.45bn in the three months to the end of March — up 20% on a like-for-like basis, beating analysts' expectations. 

In the US, the group's top market, sales rose 23% in the quarter, lifted by solid demand for Jameson whiskey, Malibu, Kahlua liquors, and Martell cognac. Broad-based price increases in early February and innovations such as Jameson Orange also boosted US sales.

Despite the challenges, the company — which also make Absolut vodka — forecast organic growth of 17% in profit from recurring operations for its financial year ending June 30. 

This reflected a 20% rise in sales in Europe, despite some deceleration in March, notably because of the impact of the Ukraine war, it said.

Pernod, which makes 3% of its sales in Russia, stopped exports to the country in March following Russia's invasion that began on February 24.

Resilient consumption by people staying at home, the reopening of bars and restaurants, and a recovery in travel would fuel strong full-year sales growth across regions, with some operating margin expansion, it added. 

Reuters