UK offers little respite for Pernod Ricard

The tough economic climate across much of Europe has continued to dent Pernod Ricard's trading in the region, the drinks producer said today.

Pernod, whose key brands include Martell brandy and Absolut vodka, said turnover in Europe fell 12 per cent to €1,686m (£1,462m), with countries such as the UK, Spain and Ireland contributing to much of the decline.

However the group said sales grew in Sweden, Greece, Belgium and Portugal, while what it called "a rebound" of international brands in Russia helped sales in Eastern Europe.

Despite this performance other markets traded well in recent months and consequently the group's management was raising its guidance for its 2009/2010 profits, it revealed.

Pierre Pringuet, Pernod's chief executive, said: "We now target organic growth of around three per cent, compared to a range of one to three per cent previously.

"We confirm our intention to step up advertising and promotion expenditure on strategic brands and markets."

Total sales for the first nine months of the year came in at €5,326m (£4,619m), down four per cent.