Pernod expects Billion-euro profit

Pernod Ricard has issued a recession-busting set of financial results, with profit from recurring operations up 24% at Euros 1.2 billion.

Sales were 13% ahead in the six months to Dec 31 and the company said it expected net profit to exceed Euros 1 billion for the first time for the full financial year.

Group net profit for the half-year was Euros 615 million, a rise of 5%.

Pernod Ricard saw organic growth of 18% in Asia and a 46% rise in sales in the Americas despite a slight decline in the US.

In Europe, strong sales in Germany, Sweden, Russia, Poland and Romania all offset more difficult trading conditions in Spain, the UK and Italy.

Jameson, Martell, Havana Club and The Glenlivet all saw a double-digit increase in net sales growth, though there was a decline of 8% for Perrier-Jouet and 7% for Kahlua.

The results prompted the broker Collins Stewart to issue a "buy" rating for Pernod Ricard shares.

It said the performance and outlook were a "powerful retort to those concerned by the level of debt at the company".

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