Pernod Ricard performs strongly despite the economic downturn.

French wine and spirits company Pernod Ricard has reported a 5% increase in half year net profits.

Despite the economic crisis, the firm witnessed a rise in profits of 5% to €615 million (£549m) for the six months to the end of December 2008.

During the latter half of last year, sales rose by 13%, netting the company a profit of €4.2 billion.

Pernod Ricard commented on the results as ‘outstanding’, drawing particular attention to the strong sales growth and the improvement in the operating margin.

Despite limited visibility, the firm predicts that the second half of the year will yield similar results.

“We anticipate that the wines and spirits sector will on the whole continue to show excellent resilience,” said Pernod.

For the full financial year, the drinks maker aims to increase organic profit and lower borrowing costs to below 5%.

Pierre Pringuet, CEO of Pernod Ricard, said: “These factors enable us to confirm our guidance for double-digit growth in our Group net profit from recurring operations, which for the first time should exceed €1bn over the full 2008/2009 financial year.”

Pernod Ricard, who owns Absolut vodka and Jacob’s Creek wine, is the second biggest alcoholic beverage company worldwide, second only to Diageo.