Pernod Ricard, the world's second-largest distiller, reported sales growth that beat estimates as demand for its Jameson Irish whiskey surged in the United States. Organic revenue rose 4 per cent in the first quarter of the Paris-based company's fiscal year. Analysts expected 2.7 per cent growth.
The shares rose as much as 3 per cent to the highest since July 2015. Sales climbed 8 per cent in the Americas and 6 per cent in Europe, both ahead of estimates.
In the US, Pernod’s biggest market, Jameson is driving growth in the Irish whiskey category, which has expanded alongside a bourbon revival. That’s compensating for weakness in China, where demand for expensive cognacs and Scotch whiskies has waned due to a government crackdown on graft and extravagant spending.
“First-quarter revenue confirms that after several years of hiatus, growth is starting to renew,” Edward Mundy, an analyst at Jefferies, said in a note.The shares were up 2.4 per cent at 111.05 euro as of 9:14am in Paris. They’ve risen 5.7 per cent this year, compared with a 20 per cent surge in rival Remy Cointreau SA. In addition to Jameson, Americans are also drinking more Avion and Altos tequilas and champagnes including Mumm and Perrier-Jouet, chief financial officer Gilles Bogaert said. – (Bloomberg)
