French drinks group Pernod Ricard today posted a forecast-beating 10 per cent rise in comparable fiscal first-quarter sales, helped by recovery in the United States and strong growth in Asia, Russia and Ukraine.
The company which owns Absolut vodka and Mumm champagne reported revenue of €1.88 billion for the three months to September 30th, up from €1.65 billion last year.
Analysts expected sales of €1.8 billion and comparable sales growth of 4.8 per cent.
Pernod said first-quarter trends were encouraging for the full year, with the European market improving, and aimed for growth in operating profit from recurring operations of close to 6 per cent.
The drinks company said it was targeting a ratio of net debt to earnings before interest, taxes, depreciation and amortisation (EBITDA) of close to 4 by its fiscal year ending June 2012.
Earlier this month, Pernod disposed of its New Zealand wine brand Lindauer and related assets for 47 million euros as well as its Renault cognac brand for €10 million.
Separately today, Remy Cointreau reported an 11.3 per cent rise in comparable half-year sales to September 30th, boosted by a 20.7 per cent rise in like-for-like Remy Martin cognac sales, which was mainly powered by trading in China and travel retail.
Remy Cointreau also said its sound financial position would enable it to comply with its banking covenant (debt/EBITDA) at the end of September 2010.
"In an economic environment which, whilst improving, remains uncertain, Remy Cointreau maintains its long-term value strategy," it said in a statement.
Reuters