Pernod sees slower growth in EMEA region

PARIS, June 30 (Reuters) - French spirits group Pernod Ricard predicted sales growth in its Europe-Middle East-Africa(EMEA) region, a major market, would slow to around 2 percent in the year to June 30, citing weakness in Russia and travel retail over the past three months.

"Over nine months we are at 2 percent growth and for this financial year we should be in line with that 2 percent," Christian Porta, EMEA head, told a conference call on Tuesday.

The EMEA region, which excludes France and Ireland (Other OTC: IRLD - news) , accounts for about one third of sales at the world's second-biggest spirits group behind Britain's Diageo (LSE: DGE.L - news) .

The owner of Absolut vodka, Martell cognac and Jameson whiskey has also been faced in China with a government clampdown on extravagant spending that has hurt premium spirits demand although there have been signs of a gradual recovery.

In the nine months ended March 31, the EMEA region achieved net sales growth of 2 percent, a slowdown from 4 percent growth in the same period a year ago.

Poland, where sales fell 10 percent, should be "slightly better" in the fourth quarter but travel retail remained "quite difficult" while the situation in Russia was "more or less in line with what we have seen over the nine months", Porta said.

In Russia, which had entered a "significant slowdown", net sales rose just 1 percent in the nine months. Sales fell 12 percent in travel retail over the period as Russians travelled less and had their spending power was cut by a weak rouble.

Growth in EMEA was driven mostly by western Europe and the key markets of Spain, Germany and Britain, and by Africa, where Pernod Ricard (Paris: FR0000120693 - news) is expanding.

Commenting on longer-term prospects, Porta said that if western Europe keeps improving, Africa continues to grow and eastern Europe "marginally improves", EMEA region sales should slightly exceed 2 percent.

(Reporting by Dominique Vidalon; Editing by Keith Weir)