PARIS (Reuters) - French drinks group Pernod Ricard (PERP.PA) said that the 2016/2017 financial year would be a stable one regarding sales in Asia, with its second-largest market in India facing a temporary slowdown due to adverse market conditions.
On the other hand, its third-largest market in China had a positive outlook for Martell cognac, added Pernod on Monday.
Pernod, which is the world’s second largest spirits group behind Diageo (DGE.L), made the forecasts in slides released on its website.
India, which accounts for about 10 percent of group revenue, has been a key growth area, driven by local whisky brands such as Blender’s Pride and Royal Stag.
But a government ban on high-value bank notes held back local consumption in the second and third quarter and sales growth in India slowed to 1 percent in the nine months to March 31, down from 12 percent in the 2015-16 full year [nL8N1HS1FC]
Pernod Ricard’s sales in Asia were flat in the nine months to March 31.
Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta