Diageo, Pernod Sales Beat Analyst Estimates on Emerging Markets
on 05/05/11 at 3:25 pmIndustry
Diageo Plc and Pernod-Ricard SA, the world’s two biggest distillers, reported revenue that beat estimates as whisky and cognac purchases in emerging economies offset tough conditions in mature markets including Spain.
Organic sales in the companies’ third quarter ended March 31, which exclude the effect of disposals and acquisitions, rose 7 percent at Diageo, the maker of Smirnoff vodka, and 5 percent at Pernod-Ricard. That beat the median estimates of 3.3 percent for Diageo and 2.5 percent for Pernod-Ricard, according to analysts surveyed by Bloomberg. The companies’ shares rose.
Liquor companies including London-based Diageo and Pernod are looking to emerging markets to drive growth as consumer spending slows because of difficult economic conditions across Europe. Both distillers reported gains in developing economies that outpaced European sales, as waning consumer confidence and declining sales in countries including Spain and Greece offset improvements in Russia, the U.K. and Germany.