Pernod Ricard has reported better-than-expected results for its fiscal third quarter, but warned that its results could be impacted going ahead due to new regulations in India (its second-largest market).
For the three months ending 31 March 2017, sales were up 7.1% to €1.99bn, although they were up a more modest 3% on an organic basis.
The group was helped by a 14% rise in sales across the Americas (+8% organic), a 9% rise in Europe (+7% organic), and a 2% uptick in Asia & the rest of the world (-2% organic). Sales of its Strategic Local Brands were flat for the period, although Strategic International Brands reported a 4% increase, and Strategic Wines grew strongly by 7%.
The group reiterated its profit forecast for the full year (underlying operating profit growth of 2%-4%), but warned that a ban on sales of alcohol near Indian highways would slow down growth in that market. India accounts for 10% of Pernod’s overall revenue.
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