Jameson Whiskey was the key performing brand for drinks group Pernod Ricard with sales rising 16 per cent in the six months ended December 31st.
The brand recorded 13 per cent volume growth worldwide with 54 markets showing double or triple digit growth.
However, Irish Distillers chief executive Anna Malmhake said a 35 per cent increase in excise on spirits over a 10 month period had a severe impact on the Irish market.
“While we recognise the financial constraints that the government is under, the recent series of punitive increases imposed on this vital part of the agri-food industry will have serious consequences, not only for established producers such as Irish Distillers but for new start-up Irish whiskey distilleries, publicans, retailers and all of their employees,” said Ms Malmhake.
Pernod Ricard cut its annual profit growth goal as it warned demand in China, its second-largest market, would remain weak through June.
The owner of Jameson whiskey, Mumm champagne, Absolut vodka and Martell cognac, which had expected Chinese demand to start recovering from the second half of its financial year to June 30th, said it remained confident over the medium- and long-term potential of the country, however.
The world's second-largest spirits group behind Diageo said it now expected a rise of between 1 percent and 3 per cent in full-year underlying operating profit against an October forecast of 4-5 per cent growth.
First-half underlying sales were flat at €4.57 billion, reflecting an 18 per cent sales fall in China, while underlying operating profit rose 2 per cent to €1.359 billion, thanks mostly to cost control.
Second-quarter sales showed a sequential improvement, however, rising 2 per cent after falling 1 per cent in the previous three months. This came mostly from a robust performance in Europe and a return to sales growth in the US.
Pernod Ricard makes 12 per cent of its sales in China, its second-biggest market after the US. Like rivals Diageo and Remy Cointreau, it has been hit by a government crackdown on luxury gift-giving and personal spending by civil servants in China, as well as slowing economic growth in the world’s second-biggest economy.
Pernod today unveiled a plan to improve operational efficiency that it said would save an annual €150 million over three years and whose proceeds would be partly reinvested to support brand development.
At the end of last year, net debt was cut by €102 million to €8.6 billion.
Additional reporting: Reuters
