Pernod Ricard raised its full year earnings target as it reported better-than-expected fourth-quarter growth.
The world's second-largest wines and spirits group said this morning it now expected earnings per share in the year to June 30th to be between €7.80 and €8 instead of its previously estimated range of €7.25 to €7.60.
Shares in the maker of Jameson whiskey and Mumm champagne rose by more than 7 per cent to a record of €162.10 and helping the company narrow its valuation gap with its main rival Diageo.
Earlier this morning Pernod shares were 5.8 per cent higher at €159.70, outperforming the broader Dow Jones Stoxx food and beverages index by 5 per cent.
On the basis yesterday's closing share price Pernod had been trading at 15.4 times expected 2007 earnings per share, compared with 16.1 for Diageo.
Sales rose 68 per cent to €6.066 billion ($7.64 billion) in the 12 months to June 30th, Pernod said today, almost one year to the day after it swallowed rival Allied Domecq.
Allied contributed to most of the growth but Pernod said underlying growth in the full year, stripping out the impact of acquisitions, divestments and currency swings, was 4.3 per cent - above most analysts' forecasts in a range of 2 to 3 per cent.