Pernod ups annual profit guidance

Strong growth in Asia helped Pernod Ricard record a 14% rise in operating profits as it announced its half-year results.

First-half recurring profits jumped 14% to €1.21 billion.

The French drinks group said an improved outlook has led to it raising its annual profit target.

Chief executive Pierre Pringuet said: “This strong performance enables us to revise upwards our guidance for organic growth in profit from recurring operations to a level close to 7% over the full 2010/11 financial year.”

The company had previously expected profit growth in the region of 6%.

Pernod said Asia remained the group’s key growth driver, with especially strong growth in China, Vietnam, India and Taiwan underpinning the region’s performance.

Regional sales growth rates ranged from 29% in Asia to 15% in the Americas and 2% in Europe. Pernod said growth was strong in Central and Eastern Europe and moderate in Western Europe.

Total first-half sales were up 13%to €4.28bn, while organic growth was 7%. Emerging market sales were up 16%.

See tomorrow’s Finance on Friday for a full analysis of the Pernod Ricard results.

Alan Lodge, 17.02.2011