A beautiful era beckons for Pernod Ricard

Pernod Ricard is upgrading its forecast for the current year's net sales organic growth to six per cent.

The upward shift follows what the group said had been an "excellent first half…testifying to the strength of our global network and the quality of our portfolio" and despite a less than favourable foreign exchange impact, notably on the US dollar.

Pernod Ricard said its sales performance had in part been driven by its luxury and prestige brands including Glenlivet 15 years (up 61 per cent), Ballantine's 21 years (up 37 per cent) and Pierre-Jouët Belle Epoque (up 51 per cent).

The group announced overall first half net sales of Euros 3,507m, up 7.3 per cent, and it highlighted second quarter organic growth of 12.4 per cent.

Europe saw organic growth up 6.6 per cent, excluding bulk spirit sales; the Americas saw a 14 per cent organic sales rise, while sales in Asia and the rest of the world grew 14 per cent.

France, Pernod's home market, witnessed sales of the group's synonymous product grow four per cent in a stagnant aniseed market, while Perrier-Jouët sales saw a double digit improvement.

Pernod said its "favourable prospects" for the rest of the year should offset the rise in European and US interest rates which will lead to an average cost of debt servicing of around 5 per cent, half a percentage point higher than anticipated.