SHARES in French drinks giant Pernod Ricard fell 2.1% as "difficulties" for Scotch whisky sales in China, which has been a key emerging market for the industry, contributed to slowing sales growth at the group.
Pernod, the world's second largest spirits group, said its business had shown "good resilience in a "more challenging macro-economic environment" as it reported growth of 2% for the third quarter of its 2012/13 financial year.
There was a "deceleration" for Scotch whisky sales over the period due to slower growth in Asia and "challenges" in the Spanish market.
However, its flagship Chivas Regal brand still managed to put on net sales organic growth of 3% for the first nine months of Pernod's financial year as a 3% fall in volumes was offset by a 6% contribution from price rises.
Its leading single malt whisky brand Glenlivet also saw a 21% sales rise, thanks largely to volume growth of 17%.
But sales of Ballantine's fell 7% as volumes declined 6%.
Top-end blended whisky Royal Salute reported a 3% fall in sales as volumes dropped 6%.
Chief executive Pierre Pringuet said: "Pernod Ricard's business demonstrated good resilience in... a less favourable economic environment."
He reiterated the company's expectation of 6% profit growth for the current financial year.
A similar picture was reported at rival Diageo, the world's largest drinks company, earlier this month where third-quarter sales rose 4%, compared with a 6% rise in the same period last year although key whisky brands remained strong.
Some analysts said the slowdown in the group's sales growth in Asia, including a 2% fall in Chinese sales, was worse than expected. But Pernod, which makes about 13% of its sales in China, said it still believed Chinese sales would be up in the current year as a whole.
There were "difficulties for Scotch whiskies" in China in the current financial year, Pernod reported, while Scotch also experienced "continued weakness" in Korea and Thailand. It was a different picture though in India where Chivas, Glenlivet and Ballantine's spearheaded the group's growth.
Overall, Pernod's Asian business achieved an underlying sales rise of 2% in the group's third quarter which is a notable slowdown from 11% growth in the first half of the year.
Asia is an important region for the drinks industry but especially for Pernod as it accounts for more than 40% of group sales and operating profit.Chivas and Ballantine's contributed to 19% sales growth in Russia, while in the United States Glenlivit showed "strong growth" in volumes and price, Pernod said.
Pernod's total revenue reached €1.74 billion (£1.5bn) in the three months to March 31, a like-for-like rise of 6% which fell short of the average of analysts' estimate of 7.3% growth, according to Reuters.
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