Pernod Ricard has warned that the slump in the pound after the Brexit vote would force it to raise prices in the UK on some of its top drinks brands.
Gilles Bogaert, chief financial officer, told The Times that the French drinks company planned to adjust its prices in Britain on imported brands to protect its profit margins.
“Consumption in Britain at this stage has not been impacted by Brexit, but the pound has declined and clearly our goal will be to protect our margins as much as we can,” he said.
His warning came as Pernod Ricard reported a 4% increase in first-quarter sales to €2.25bn on an organic basis, ahead of market forecasts of a 2.8% rise.
Sales in the Americas grew by 8% with China down 1%, compared with a 9% fall in the previous year. European sales grew by 6%.
Last month Bogaert said the hit on imports from the slide in sterling would be more than offset by the positive impact on exports of Chivas Brothers, its Scotch whisky business.
