DRINKS giant Pernod Ricard has underlined its return to growth in China as it reported a near 10 per cent hike in underlying sales for the third quarter of its financial year.

The Paris-based company, which owns the Chivas Brothers Scotch whisky business, reported organic sales of €1.93 billion (£1.7bn) for the period, up 9.3% on the same quarter last year.

It confirmed its expectation of achieving organic profits growth of 6% for the full-year, at the upper end of forecasts.

The third-quarter performance helped Pernod lift sales by 6.3% over the first nine months of its fiscal year to €7.1bn. That included sales growth of 10% across its “dynamic” Asia/ Rest of World territory, under which the key growth markets of China and India fall.

Sales have soared by 19% in the world’s second biggest economy in the year to date, boosted by a “very good” Chinese New Year - one of the biggest sales opportunities for spirits exported to the country. It confirms that the distiller has now put protracted challenges faced in recent years by luxury spirits producers in China, sparked by a government-led austerity campaign, firmly behind it.

Pernod declared its Chivas brand had responded well to its relaunch in the market, where it recently introduced a Chivas Regal 12-year-old. The Chivas brand has also forged a tie-up with the NBA, the US basketball league – basketball is one of the most-watched sports in China. Outside whisky, it highlighted strong growth for its flagship Martell Cognac brand across all price segments for the year to date, although it noted that the tight management of inventories to ensure sustainable growth would lead to a weaker performance by the brand in the fourth quarter.

Elsewhere in Asia, Pernod said it had seen growth of 14% in India, an emerging market of huge potential for Scotch whisky exports. It said sales in India benefitted from favourable comparisons with the second and third quarters of 2017, which were affected by monetisation – a controversial move by the Indian government to crack down on counterfeit banknotes by taking high-value notes out of circulation. Pernod added that it does not expect to see any further disruption in India because of the highway ban, which effectively prohibits the sale of alcohol within 50 metres of highways.

The company reported organic sales growth of 18% for across its Asia/ RoW business in the third quarter.

Elsewhere, the company said sales in the US were up 3% for the year to date, highlighting strong momentum behind Jameson Irish whiskey, Martell, and Tequila brands Avion and Altos. However, it warned that its Absolut vodka brand was still in decline in the market.

In Europe, the company reported “modest” growth of 2% for the nine-month period. There was growth of 6% in Germany, 3% in the UK and 10% in Russia, although it flagged the emergence of “renewed geopolitical tension” in that country amid economic sanctions and the weakness of the rouble.

The growth in these markets was offset by a 4% sales decline in both Spain and France for the year to date.

Alexandre Ricard, the company’s chairman and chief executive, said: “We have very strong year-to-date sales growth at 6.3%. Our strategy is consistent and driving results, in particular in terms of diversifying the sources of growth.

“We confirm our FY18 guidance given to the market on 9 February 2018 at the top-end of the range, with organic growth in profit from recurring operations of 6%.”

In February, Pernod Ricard announced that Laurent Lacassagne will step down as chairman and chief executive of Paisley-based Chivas on July 1, bringing his 30-year association with the French company to an end.

Mr Lacassagne had held his most recent role since 2013, prior to which he had been chairman and chief executive of Pernod Ricard Europe for five years.

He had held his most recent role since 2013, prior to which he had been chairman and chief executive of Pernod Ricard Europe for five years.

Mr Lacassagne will be replaced by Jean-Christophe Coutures, chairman and chief executive of Pernod’s Irish Distillers division.

The switch comes as Chivas prepares to close its operations in Paisley to move to a new £40m bottling plant in Dumbarton.

All 450 staff employed in Paisley have been guaranteed a job in Dumbarton, with the transfer to the Kilmalid site set to begin next month.

It is expected to be completed at the end of 2019.