By Scott Wright

PERNOD Ricard, the owner of Scotch whisky distiller Chivas Brothers, has raised its profit expectations as its recovery from the impact of the pandemic continues to gather pace.

The drinks giant, which produces whisky brands Ballantine’s and Chivas Regal, said it now expects organic growth in profit from recurring operations of 16 per cent for its 2021 financial year – up from the 10% it guided in April.

This would bring profit growth back in line with the level achieved by the company in 2019 – before the pandemic struck – though Pernod said that sales continue to be impacted by restrictions in the on-trade and travel retail sector, as well as “structure costs not yet at their normative levels”.

The company said yesterday: “The pace of recovery is proving stronger than anticipated. The off-trade continues to be resilient while on-trade demand is accelerating as restrictions are progressively lifted.”

Unveiling its third-quarter sales update in April, Pernod hailed strong growth in key international markets – including the US, China and India – as it flagged its expectation of an increase in profits. And it forecast at that stage that sales would continue to accelerate in the fourth quarter.

Now it has lifted its guidance on profits growth to 16% from 10%.