PARIS, Aug 31 Reuters Pernod Ricard posted a higherthanexpected 11 organic rise of its fullyear 202223 operating profit amid strong sales, led by a recovery in demand for its Martell cognac in the fourth quarter in China where it was able to raise prices.

The owner of Mumm champagne and Absolut vodka said that in an environment that remained volatile it expected broadbased net sales growth for the full year 202324, with a soft start in the first quarter which started in July in the key markets of China and the United States.

Challenging macroeconomic conditions would drive down sales in China in the first quarter, with a high yearago comparison basis expected to ease from the second quarter, the group said in a statement.

In the United States, high comparisons basis would also lead to a sales decline in the first quarter, with a positive outlook for the full year, it added.

The world39;s secondbiggest spirits group said that with recurring free cash flow at 1.653 billion euros 1.80 billion, it was offering shareholders a 14 dividend hike to 4.70 euros per share and a new buyback scheme worth 500 million to 800 million euros.

Over the twelve months to June 30, 2023, the firm39;s profit from recurring operations reached 3.348 billion euros, an organic rise of 11, beating analysts39; expectations of a 9.6 rise and company39;s guidance for around 10.

Sales reached 12.137 billion euros, an organic rise of 10, with sales in the fourth quarter alone climbing 19.

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