French spirits giant Pernod Ricard raised its annual profit target today due to strong growth in Asia and an improving outlook, but the company warned of a "concerning" outlook in Ireland.

There was some cause for optimism as Jameson posted a strong performance in the six months, recording growth of 16 per cent in the period, making it one of the brand’s best performances.

Powers Irish Whiskey also increased sales year on year and gained market share, while Absolut vodka almost doubled its sales.

The drinks firm said the off-trade benefitted from a significant reduction in cross border trade during the period, and this was reflected throughout the Irish Distillers'portfolio. However, the hospitality sector continued to suffer during 2010.

“This six month period has proven to be one of the most dynamic and successful periods ever for Jameson, as it reached two key milestones on its journey to become one of the world’s top spirit brands,” said chief executive of Irish Distillers Pernod Ricard, Alexandre Ricard.

“As one of Ireland’s most successful exports, Jameson is playing its role in the export led recovery which this country, this economy needs so badly at this juncture.

“As this Irish brand continues to grow in its 100-plus  markets around the world, I can only see extra job and extra benefits for the Irish economy flowing from this success.

However, he said the company’s performance and outlook in Ireland, and that of the drinks industry, is concerning.

The Paris-based maker of Absolut vodka and Martell cognac said global economic conditions had improved in the last six months of 2010, led by Asian markets, as it raised advertising spend to support its recovery.

"This strong performance enables us to revise upwards our guidance for organic growth in profit from recurring operations to a level close to 7 per cent over the full 2010/2011 financial year," chief executive Pierre Pringuet said in a statement.

This new target represented a rise from close to 6 per cent given previously for its financial year to end-June 2011.

Pernod, which also owns the Mumm and Perrier-Jouet champagne brands, said Asia remained the growth driver of the group, with very strong growth in China, India, Vietnam and Taiwan. Overall emerging market sales grew an underlying 16 per cent.

The group reported a 7 per cent rise in underlying sales for the half-year to end-December and an 8 per cent rise in underlying recurring operating profit to €1.21 billion, compared with a Reuters consensus of €1.18 billion. The overall rise in operating profits was 14 per cent.

Last week, larger rival Diageo missed earnings forecasts due to tough trading in debt-hit Greece, Ireland and Spain and stuck to an annual operating profit target that sees only better growth than last year's 2 per cent.

Pernod shares have risen around 20 per cent over the last five months on signs of recovery in some of its markets and have outperformed its peers in the STOXX 600 European food and beverage index by 12 per cent. They closed yesterday at €70.63.

Reuters