French spirits maker Pernod Ricard said growth in its first quarter of 2021, which opened in July, was 20% higher than expected, driven by increased demand in China, the United States and India.
Pernod Ricard, the world’s second-largest spirits group behind Diageo, said that consumption by people staying at home remained resilient, while the reopening of bars and restaurants was a significant part of the group’s growth.
“We are in a qualitative direction. We are confident, but first we have to get through Christmas and the Chinese New Year to gain visibility,” said chairman and chief executive Alexander Ricard. Analysts expect sales growth of 9.7% for the full year. Pernod expects “good sales growth to continue throughout the year“.
However, despite the strong sales growth, Pernod’s shares lost 0.8% to 197.30 euros.
For the first quarter ended 30 September, Pernod Ricard achieved sales of €2.178 billion, up 20% on the previous year. The market was expecting a 15.7% increase in sales.
The strong start to the year saw sales rise by 9% in the US, the group’s largest market, with good restocking ahead of the festive season and a rebound in demand as bakeries and restaurants reopened following the easing of anti-COVID restrictions.
In China, sales jumped by 22%, driven by strong demand during the Mid-Autumn Festival and the rise in prices for Martell cognac. The country contributes around 9% of Pernod Ricard’s sales and is its second largest market.
Worldwide retail sales rose by 55% over the year, returning to growth in all regions.
Read also > US LUXURY SPIRITS SALES UP IN FIRST HALF OF 2021
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