French spirits maker Pernod Ricard recorded organic sales growth of 1.3% for the first quarter of its fiscal year.
The Absolut vodka and Chivas Regal whisky owner posted revenue of €2.48 billion for the quarter and said that growth was “in line with expectations”.
The firm delivered 6% sales growth in the US, thanks in part to brands such as Kahlúa, Malibu and Jameson.
Sales growth stood at 6% in China, compared to 27% in the year-ago quarter, and were boosted by a price rise for Martell cognac. However, Chivas declined in the country due to a “challenging on-trade environment”.
In India, sales were up 3% with “dynamic growth” for Imperial Blue whisky and “continued strong double-digit growth” for Jacob’s Creek wine.
Alexandre Ricard, Pernod Ricard CEO, said: “Q1 growth was moderate, as expected. In an environment that remains particularly uncertain, we confirm our FY20 guidance of organic growth in profit from recurring operations of between 5% and 7%.”
In recent months, Pernod Ricard has bolstered its position in the bourbon category through the purchase of a majority stake in Rabbit Hole Whiskey and acquisition of TX whiskey owner Firestone & Robertson.
It has since completed its acquisition of Castle Brands – the owner of brands such as Jefferson’s Bourbon, Brady’s Irish Cream and Clontarf Irish Whiskey.
Last month, the company announced plans to build a malt whisky distillery in Sichuan, China with a $150 million investment for the next decade.