PARIS (Reuters). – French spirits group Pernod Ricard (EPA:) Strong demand from key U.S. and Chinese markets drove a 20% increase in organic sales during the third quarter 2021/2022, surpassing analysts’ predictions.

Pernod Ricard which also owns Mumm champagne as well as Absolut vodka and Martell cognac said it anticipated softer fourth quarter sales, due to COVID interruptions in China and a gradual normalisation of business in the United States, and because of the war in Ukraine.

Pernod Ricard forecasted that, for the 2021/2022 financial year, which ended June 30, and in spite of an inflationary and increasingly difficult environment, there would be 17% organic growth from recurring operations.

The report stated that resilient consumption would drive full-year growth in all regions through the opening of new bars and restaurants, as well as continued recovery in travel retail.

Pernod is the second largest spirits company in the world. Diageo LON: reported sales of 2.47 billion euro ($2.57billion) for the three-months to March 31, up 20% on an like-for-like basis and beating analyst expectations of 14.3%.

Pernod Ricard’s fiscal year begins on July 1.

($1 = 0.9507 euros)