INTERNATIONAL drinks company Pernod Ricard has returned to growth in the three months from June to September, and is forecasting profit from recurring operations to increase organically by one to three per cent for the full year to end-May next year.
The company, which owns Chivas Brothers in Paisley, posted organic sales growth of two per cent for the first quarter of its financial year, despite a fall in sales in China and a "mixed" performance in Europe.
Chief executive Pierre Pringuet commented on the quarter reflecting its "resilience in a difficult context," and total sales reached €2 billion (£1.6bn), broadly flat from the same quarter last year.
Of the latest total, €1.2bn related to mature markets and €817 million to emerging markets. Sales of its top 14 brands jumped by two per cent year-on-year to reach €1.3bn.
Net sales in Europe amounted to €652m, down from €666m, while for the Americas the total was €530m, from €532m 12 months previously. For Asia and the rest of the world the figure grew from €814m to €855m.
Looking at Asia, the firm highlighted an "excellent" quarter in India, where sales increased by 21 per cent.
However China remains a "difficult" market, and while volumes are improving the business said sales fell by nine per cent in the quarter on a negative mix, with the following three months set to be dragged down by a later Chinese New Year.
Turning to Europe, sales were down in Germany and Poland, but Spain experienced its first growth since 2008, and the performance in France and the UK was "satisfactory," the company said.
In the UK, the firm said the business performance was positive, boosted by a very strong showing from priority premium wines Campo Viejo and Brancott Estate.
The Glenlivet single malt whisky, which is produced in Speyside, experienced net sales growth of 17 per cent, while Chivas Regal, one of the company's global icon brands, saw its net sales increase by nine per cent.
The brand that showed the highest growth in net sales was Kahlua at 23 per cent, with the biggest drop by Havana Club and Malibu, which both fell by seven per cent.
Pernod Ricard said it expects the environment to remain challenging around the world, but nonetheless forecast measured improvement in sales growth.
The Chinese market will improve gradually and growth will remain "soft" in the US, it also said.
Alexandre Ricard, deputy chief executive, added: "We plan to increase investment behind our priority brands and innovations."
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