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Pernod Ricard first quarter sales top estimates as travel returns

French distiller Pernod Ricard SA reported first-quarter revenue and sales growth that beat analysts' estimates as travel retail continued to rebound and drinkers in India and China spent on pricier spirits.

The maker of Absolut vodka and Jameson Irish whiskey said sales hit €3.3bn ($3.2bn) during the period, with organic growth of 11pc topping analyst consensus estimates of €3.19bn and 9.7pc growth.

Travel retail continued to rebound despite the "softness" of Chinese travellers, Pernod said in a statement.

The Paris-based company reported 9% sales growth in China excluding travel retail, and 21% growth in India.

Pernod Chairman and Chief Executive Officer, Alexandre Ricard, said that despite a "persistently volatile context" the company expects "dynamic" net sales growth to continue through 2023, "albeit moderating on a normalizing comparison basis."

Pernod will buy back shares worth between €500m and €750m during the year, it said. The company plans to pay a dividend matching about 50pc of the prior year's recurring net profit.

The company plans 2023 capital expenditures on acquisitions and other investments of about 7pc of net sales, it said.

Pernod recently beefed up its US spirits portfolio, increasing its stake in Sovereign Brands, buying a majority stake in Codigo 1530 tequila and launching a sotol Mexican liquor called Nocheluna.