Pernod Ricard rises profit guidance amid strong growth in China and India
Pernod Ricard, the world’s second-largest distiller, has raised its profit forecast for the current fiscal year after it reported strong sales in China and India.
The French spirits maker increased its organic sales projection for 2019 to 5% to 6%, from 4% to 6%.
The maker of Absolut vodka and Beefeater gin said it saw a 6.3% increase in underlying profits to EU€2.36bn ($2.7bn) in 2018.
Pernod Ricard says this growth was driven by strong demand in China and India, as well as robust sales in the United States, its top market.
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Pernod Ricard said that its Jameson's whiskey brand also extended its nine-year stretch for sales growth.
Going forward, the company said it faced an “uncertain political and monetary environment” as well as higher costs for ingredients such as agave for tequila and grapes for cognac.
“FY18 was a very strong year,” said Alexandre Ricard, Chairman and Chief Executive Officer at Pernod Ricard.
“Consistent strategic implementation has enabled us to deliver a significant improvement in business performance while investing for the future.
"Our sales have accelerated and diversified, and our margins improved.”