Pernod sees sales improving in 2010

Pernod Ricard expects sales to pick up in 2010, after reporting first-half results which missed forecasts. 

 Analysts said Pernod's recovery will be helped by having a bigger share of the fast-growing Asian market than Diageo Photo: Bloomberg News

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Like larger rival Diageo, the French wine and spirits maker has been hit by the economic slump, as consumers trade down to cheaper brands and spend less money in bars.

Net profit from continuing businesses fell 5pc to €648m (£564m) in the six months to the end of December, missing analysts' forecasts of €661m. The Paris-based company does not break out profit before tax. Sales fell 3pc to €3.79bn.

Anglo Platinum to axe 5,000 jobs in cost-cutting drivePernod's champagne brands were hit hard, along with the rest of the industry, with sales of Mumm down 11pc and Perrier Jouet down 16pc. In spirits, sales of Jameson whiskey rose 7pc and Absolut vodka, which Pernod bought for €5.6bn in 2008, rose 5pc.

Pernod's profit was also dented by the weakness of the dollar and other currencies against the euro. Currency movements will cost the company between €100m and €120m this year.

Pierre Pringuet, chief executive, said the company saw "strong growth" in sales in January, and both sales and profit are expected to increase in the second half.

Analysts said Pernod's recovery will be helped by having a bigger share of the fast-growing Asian market than Diageo.