February 8, 2018 / 6:33 AM / a year ago

Pernod Ricard raises profit goal after forecast-beating H1 results

PARIS, Feb 8 (Reuters) - Pernod Ricard raised its annual profit growth outlook after delivering a forecast-beating rise in first-half earnings, driven by stronger demand in China, India and at its travel retail division.

Pernod, the world’s second-biggest spirits group behind Britain’s Diageo, said it was now targeting an organic rise of between 4 percent and 6 percent in profit from recurring operations for the year ending June 30, 2018.

This compared to a previous forecast for 3-5 percent growth. Those forecasts were based on constant exchange rates.

The owner of Absolut vodka, Martell cognac and Mumm champagne, however, said the euro’s rise against the dollar would knock 180 million euros ($221 million) off full year operating profit, a bigger hit than the 125 million euros impact previously forecast.

First-half group sales reached 5.082 billion euros, an organic rise of 5.1 percent, while profit from recurring operations reached 1.496 billion euros, an organic rise of 5.7 percent.

This compared with analysts’ forecasts for a 4.6 percent organic sales rise and a 4 percent rise for profit from recurring operations.

$1 = 0.8148 euros Reporting by Dominique Vidalon Editing by Sudip Kar-Gupta

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