Pernod Ricard SA on Thursday raised its full-year guidance for operating profit after sales increased, helped by a strong performance in Asia.
The Paris-based premium spirits company's net profit was 1.02 billion euros ($1.16 billion) in the first half of fiscal 2019, an 11% on-year decrease as a result of a number of non-recurring items, it said.
Pernod Ricard delivered operating profit of EUR1.1 billion for the first half of fiscal 2019, a rise of 11%. The company said it would now target a rise in operating profit between 6% and 8% this year, up from growth between 5% and 7%.
Sales in the second quarter were EUR2.8 billion, a rise of 5.6% on an organic basis, which strips out currency fluctuations and acquisitions. Sales in Asia rose 12% organically in the period.
The maker of Absolut vodka and Jameson whiskey said it will target sales growth between 4% and 7% between fiscal 2019 and 2021 as part of a new three-year plan.
It also said it will increase its operating leverage by 50 to 60 basis points per year over the period and gradually increase its dividend distribution to around 50% of profit from recurring operations by fiscal 2020, up from a distribution of 41% for fiscal 2018.
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