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Pernod Ricard posts 6.8 percent rise in quarterly revenue

Pernod Ricard posts 6.8 percent rise in quarterly revenue

Beverage company Pernod Ricard reported a 6.8 percent increase in third-quarter sales Friday, on strong demand in Asia thanks to the Chinese New Year, a good performance in Europe and in spite of the negative effect of the strong euro.
Sales in the January-March period rose to euro1.39 billion (US$1.89 billion) from euro1.3 billion a year earlier, Pernod said. That was above expectations of euro1.35 billion (US$1.84 billion) predicted by analysts polled by Dow Jones Newswires.
Internal growth was 12.2 percent, above analysts' expectations of 8.3 percent.
Pernod Ricard shares rose 2 percent to euro161.06 (US$219.25) Friday. Since the beginning of the year, they have gained more than 9 percent.
In Asia, Pernod Ricard's revenues in the third quarter were strong thanks to the Chinese New Year, while sales in Europe benefited from a recovery in western European markets _ notably Germany and its home market of France _ and continued vigor in eastern European markets, the company said in a statement.
Wine brands also helped boost the third-quarter performance with a 6.8 percent internal growth over the quarter, Pernod noted.
The European market performance is "a good surprise," Fideuram Wargny analyst Guy Francheteau said.
Chairman and co-CEO Patrick Ricard said the company confirms "guidance of around 20 percent growth in net profit from ordinary activities, excluding foreign exchange impact, for the full year."
Sales for the first nine months of the financial year came to euro4.9 billion (US$6.67 billion), up 7.2 percent from euro4.57 billion a year earlier.
"The continuing decline in the U.S. dollar, a certain number of Asian currencies and the Mexican peso versus the euro had an adverse affect of sales for the first nine months of the 2006-2007 financial year of euro139 million (US$189 million)," Pernod Ricard said in its statement.
Chief Financial Officer Emmanuel Babeau noted, however, that the weaker dollar "is not such a bad thing, as half of the company's debt is in U.S. dollars."
Babeau said talks were ongoing about a possible acquisition of the Stolichnaya vodka brand, which the company distributes elsewhere in the world but not in its home market of Russia, but did not elaborate.
He also reiterated Pernod Ricard's interest in acquiring the Swedish state-owned Vin & Sprit, owner of the Absolut vodka brand, should the Swedish state put it up for sale, "which has not been the case so far."


Updated : 2021-10-26 11:31 GMT+08:00