UPDATE 1-Pernod comparable fiscal Q1 sales beat forecasts

Published 10/21/2010, 02:15 AM
Updated 10/21/2010, 02:16 AM

* Pernod Q1 sales 1.88 bln eur vs Reuters poll 1.80 bln

* Pernod Q1 comparable sales up 10 percent vs Reuters poll 4.8

* Aims for FY recurring op. profit close to 6 percent.

* Remy Cointreau H1 comparable sales up 11.3 percent

(Adds details, Remy Cointreau H1)

PARIS, Oct 21 (Reuters) - French drinks group Pernod Ricard on Thursday posted a forecast-beating 10 percent rise in comparable fiscal first-quarter sales, helped by recovery in the United States and strong growth in Asia, Russia and Ukraine.

The company which owns Absolut vodka and Mumm champagne reported revenue of 1.88 billion euros ($2.6 billion) for the three months to Sept. 30, up from 1.65 billion euros last year.

Analysts expected sales of 1.8 billion euros and comparable sales growth of 4.8 percent, based on a Reuters poll.

Pernod said first-quarter trends were encouraging for the full year, with the European market improving, and aimed for growth in operating profit from recurring operations of close to 6 percent.

The world's No.2 drinks company behind Diageo also said it was targeting a ratio of net debt to earnings before interest, taxes, depreciation and amortisation (EBITDA) of close to 4 by its fiscal year ending June 2012.

Earlier this month, Pernod disposed of its New Zealand wine brand Lindauer and related assets for 47 million euros as well as its Renault cognac brand for 10 million euros.

Separately on Thursday, Remy Cointreau reported an 11.3 percent rise in comparable half-year sales to Sep.30, boosted by a 20.7 percent rise in like-for-like Remy Martin cognac sales, which was mainly powered by trading in China and travel retail.

Remy Cointreau also said its sound financial position would enable it to comply with its banking covenant (debt/EBITDA) at the end of September 2010.

"In an economic environment which, whilst improving, remains uncertain, Remy Cointreau maintains its long-term value strategy," it said in a statement. (Reporting by Astrid Wendlandt; Editing by Mike Nesbit) ($1=.7264 euros)

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