Pernod Ricard cautious on full year, Asia helps first-quarter

By Dominique Vidalon PARIS (Reuters) - French spirits maker Pernod Ricard on Thursday forecast modest profit growth in its current financial year after improving demand in Asia helped sales beat forecasts in the first quarter. The world's second-biggest spirits group behind Britain's Diageo Plc said it remained cautious for the current year, predicting a gradual improvement in sales in an environment that it said would remain "difficult". Pernod forecast growth in underlying profit from recurring operations of between 1 and 3 percent for the year ending June 30, 2015. That would compare with profit growth of 2 percent achieved in fiscal year 2013/14. Pernod relies on Asia for about 38 percent of its sales and 43 percent of its operating profit. Like its rivals, including smaller peer Remy Cointreau , it has been hurt by a government clampdown on luxury gifts in China, in addition to the slowdown in economic growth in the country. Diageo and Remy have, however, forecast improving sales this year as they navigate past problems in China. Pernod, the owner of Mumm champagne, Absolut vodka and Martell cognac, said revenue for the first quarter ended Sept. 30 was 2.037 billion euros (1.6 billion pounds), a like-for-like rise of 2 percent and a rebound from a 2 percent decline in the fourth quarter of 2013/14. The company-compiled consensus of analysts was for underlying sales growth of 1.5 percent in the quarter. In Asia, like-for-like sales rose 4 percent in the quarter while in America, where it makes 27 percent of group sales, revenue rose 3 percent. In Europe, where Pernod makes 35 percent of revenue, sales were still down 1 percent. Pernod shares have gained 4.4 percent so far this year, in line with the European sector <.SX3P>, which is up 4.1 percent. (Editing by James Regan)