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Pernod Ricard H1 profit rises with strong U.S. demand

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Profits at Pernod Ricard rise 9%
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Profits at Pernod Ricard rise 9%

Pernod Ricard posted a 3 percent rise in first-half profit from recurring operations on Thursday, helped mostly by robust demand in its main U.S. market and by cost control.

The world's second-biggest spirits group behind Britain's Diageo said it still faced a tough environment in China and difficulties in South Korea in the first half, and it kept its annual profit growth outlook unchanged.

In China, where economic growth is slowing and a government clampdown on extravagant spending has hurt demand for premium spirits, sales fell 2 percent in the first half ended Dec. 31.

First-half group sales reached 4.958 billion euros ($5.60 billion), an organic rise of 3 percent, while profit from recurring operations reached 1.438 billion euros.

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This compared with analysts' expectations of 4.969 billion in sales and 1.460 billion in operating profit in a Reuters poll.

The owner of Absolut vodka, Martell cognac and Jameson whiskey said it still eyed an organic rise of between 1 percent and 3 percent in profit from recurring operations for the year ending June 30, 2016.

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