FRANCE: China, France blackspots fail to hamper Pernod Ricard in H1

• Half-year net profits rise by 5% to EUR858m (US$1.15bn)
• Sales in six months to end of December increase by 6% to EUR4.91bn
• Operating profits from recurring operations climb by 6% to EUR1.46bn
• Re-states full-year target of 6% operating profits growth

Pernod Ricard has hailed a "good performance" in its H1, despite a "less buoyant environment" than the previous year.

The company said today (14 February) that net profits for the six months to the end of December came in 5% up at EUR858m (US$1.15bn). Sales in the half-year rose by 6% to EUR4.91bn, with operating profits increasing by 6% to EUR1.46bn.

The sales performance builds on Pernod's figures in Q1, when group sales were up by 5%.

While Q2 sales delivered organic growth of 5% to EUR2.70bn, a spate of pre-buying in France in the previous fiscal year and this year's timing of the Chinese New Year pulled reported growth back to 3% for the three-month period.

In Jauary last year, France introduced a 14% increase in excise tax on spirits.

The company declared itself satisfied with the "continued favourable price/mix" of its 14 priority brands, highlighting strong performances by Martell Cognac and Jameson Irish whiskey in the half-year. Ricard suffered most in the period, with sales value and volumes each slumping by 34%.

Looking to its full year, to the end of June, Pernod confirmed its target of 6% growth in operating profits.

Pernod's share price opened up this morning, rising by 3.1% to EUR97.00 at 1054 CET.

To read the company's official statement, click here.

For just-drinks' in-depth look at Pernod's performance by region and brand, click here.