The second largest premium drinks company in the world said net profit from recurring operations declined -3%. At end December, debt was reduced €102m to €8.6 billion.

The French-based multinational company said sales were mainly impacted by one market, China (-18%):

                        Asia-Rest of the World, excluding China +2%;

                        Good performance in Europe (+4%);

                        Return to growth in Americas (+3%) following a strong second quarter.

The company says its top 14 brands were “virtually stable despite a mix effect of -4% (decline of Martell in China). Volumes were stable and pricing remained positive”.

The second quarter showed a return to growth. Its key local brands were said to have performed well (+4%).

Its operating margin improved, thanks to control of resources, leading to organic growth in profit from recurring operations of +2% at €1.359m.

The star performer among Pernod Ricard’s top 14 was Jameson Irish whiskey with volume up 13% and net sales +16%, followed by Ricard with 8 and 9% respectively and The Glenlivet single malt Scotch whisky with 1% and 10% net sales.

The worst performers were The Royal Salute blended Scotch whisky with -10% and –11% and Martell Cognac with -8 and -8%