PARIS Oct 24French spirits group Pernod Ricard
announced first quarter underlying sales below market
expectations on Thursday, with revenues hit by persistent
weakness in China.
The world's second-biggest spirits group behind Britain's
Diageo was cautious for the current year, predicting
growth in underlying profit from recurring operations of between
4 and 5 percent for the year ending June 30, 2014.
That would be a slowdown from the profit growth of 6 percent
achieved in FY 2012-13.
Pernod relies on Asia for about 46 percent of its recurring
profits. Like its rivals, including smaller peer Remy Cointreau
, it has been hurt by a government clampdown on luxury
gifts in China, in addition to the slowdown in economic growth
in the country.
Pernod achieved sales of 2.013 billion euros in the quarter,
a like-for-like decline of 1.0 percent and a sharp slowdown from
5 percent growth in the fourth quarter 2012/13.
Six analysts polled by Reuters had eyed a like-for-like rise
of 1.7 percent on average in the quarter.
(Reporting by Dominique Vidalon; editing by Mark John)