Wine and spirits group Pernod Ricard reported a lower-than-expected rise in first-half net profit today.
Pernod said net earnings at constant exchange rates in the six months to December 31st rose 18 per cent to €529 million.
However, the inclusion of other items such as tax charges brought its group net profit to €500 million - up 2.3 per cent from the previous year but below the average forecast of €550 million analysts had expected.
First-half operating profit was €886 million, a rise from the €767 million seen a year earlier - but again below the analysts expectations of €922 million.
Pernod blamed "unfavourable foreign exchange" moves, mainly in the US dollar and linked currencies such as the yuan, for reducing growth in operating profit to the tune of €40 million.
The company predicted a profit growth of 20 per cent for the full year.
It raised its full-year like-for-like sales growth target to over 6 per cent in January from 4 to 6 per cent. It said then it expected a "strong" double-digit rise in full-year net profit.
Meanwhile, the group is in talks with Russian authorities about securing an extension of its rights to Stolichnaya, which it sells outside Russia under an agreement due to expire in 2010.
It has also expressed interest in Swedish state-owned drinks group Vin & Sprit, owner of Absolut vodka, the world's second-best selling vodka after Smirnoff, made by rival Diageo.
"We could do both ... but one brand will do," Chairman Patrick Ricard said, adding he did not anticipate ownership of both would lead to anti-trust problems.