Pernod Ricard has increased organic sales 1% in the third quarter to €1.86bn but the figure fell 4% on a reported basis because of weakness in emerging market currency.
The drinks group’s stock price fell 5% to € 98.51 on the back of the news.
Growth in the quarter went backwards (-3%) as a result of the earlier Chinese New Year but part shipment phasing in the US helped offset the fall, the group, which owns Jameson, Malibu and Beefeater gin, said in a trading update.
Revenues for the first nine months of Pernod’s financial year totalled € 6.81bn, with organic growth of +3% and reported growth of +4% thanks in particular to a positive US dollar impact.
The year-to-date performance was driven by strong growth in the Americas (+6%), modest growth in Asia-Rest of the World (+2%) and “resilient” sales in Europe (+1%).
Chairman and CEO Alexandre Ricard said: “Our sales growth to date at +3% is solid in an environment that remains contrasted. Our strategy has remained consistent and is driving results: innovation is accelerating; operational excellence is driving efficiencies; our ongoing initiatives in the USA are starting to deliver; we are working actively to develop the new phase of growth in China, where we remain confident in the medium-term potential despite the tough current context.”
Ricard also confirmed the group’s full-year guidance of organic growth in profits of between +1% and +3%.