Irish Distillers toasts 13pc growth in Jameson sales
IRISH Distillers is raising a glass after sales of Jameson Irish Whiskey soared by 13pc over nine months.
Drinks giant Pernod Ricard, which owns the whiskey maker, reported third-quarter revenue that missed estimates as destocking in China continued to weigh on shipments.
It said global revenues were down 7pc to €6.2bn in the nine months to March due to a highly unfavourable foreign exchange effect.
Sales of its top 14 brands, which also include Absolut vodka and Havana Club, were virtually stable (-1pc), with the return to growth of Scotch whiskies. Jameson saw the biggest rise of 13pc in net sales and 10pc in volume.
"The headline miss is unhelpful but the big driver of that seems to be technical effects in Europe," Jonathan Fyfe, an analyst at Mirabaud in London, said. He added: "It is also reassuring to note that management feel able to reiterate full-year guidance and Asia ex-China shows good momentum."
Paris-based Pernod has been hit by the government crackdown on extravagant spending in China, reducing sales of pricey brands, such as Martell cognac.
Sales in Asia-Rest of World, which fell 3pc, were also affected by tough trading conditions in Thailand and South Korea.
Excluding China, sales growth in the area was up 5pc over the nine months, compared to 2pc in the half-year on the back of a "very good performance" in India and travel retail.
Elsewhere, European sales were up 2pc, with eastern Europe posting growth of 9pc, Pernod said.
And the Americas market, which included the United States – the world's most profitable market – rose 4pc.