The French maker of Martell cognac and Mumm champagne battled through poor demand in China triggered by an anti-extravagance drive to produce a small rise in sales today.
Pernod Ricard, which also owns Absolut vodka and Beefeater gin, said sales were up 1% to €2.04 billion (£1.61 billion) in the first quarter as it attempted to recover from the slump in Asia.
Like rivals Diageo and Remy Cointreau, Pernod was hit by the austerity drive put in place by China’s government aimed at stopping “gift giving” to officials and lavish banquets where huge quantities of expensive spirits were consumed.
Pernod was forced to cut costs to offset the sales slump earlier this year but today it revealed it will step up investment in its top brands to ensure growth globally.
Deputy chief executive and chief operating officer Alexandre Ricard said: “For the full financial year we anticipate a gradual improvement in sales, in an environment that will remain difficult.” The group forecasts profit growth of 1-3% for this financial year.
Sales were up 2% in the period.
