(Bloomberg) -- French distiller Pernod Ricard SA reported sales growth that beat analysts’ estimates as the Chivas Regal maker raised prices and travel retail continued to rebound.

Sales rose 11% on an organic basis to €3.3 billion ($3.2 billion) in the fiscal first quarter, the maker of Absolut vodka and Jameson Irish whiskey said Thursday.

As much as 7% of the growth came from charging more for its spirits as inflation continued to rise in key markets. The company lifted prices in the US in October and more could come potentially throughout the year, Chairman and and Chief Executive Officer Alexandre Ricard said in an interview.

The CEO said the company, which targets the premium market, has yet to see any evidence of consumers switching to lower-priced spirits amid economic pressures.

“At this stage, we don’t see any downtrading,” the CEO said. 

Travel retail continued to rebound in the quarter despite the “softness” of demand from Chinese travelers, Pernod said.

‘Pretty Strong’

The CEO said the company enjoyed “pretty strong sales” in China around the mid-autumn festival, a key period. Sales in China rose 9% to a record during the quarter, following 22% growth in the year-earlier period.

Pernod said it will buy back shares worth between €500 million and €750 million during the year. The company plans to pay a dividend matching about 50% of the prior year’s recurring net profit. 

The company plans 2023 capital expenditures on acquisitions and other investments of about 7% of net sales, it said. 

Pernod recently beefed up its US spirits portfolio, increasing its stake in Sovereign Brands, buying a majority stake in Codigo 1530 tequila and launching a sotol Mexican liquor called Nocheluna.

Ricard said Pernod has call options to increase its Sovereign Brands stake to a majority and will consolidate the brand’s operations on its books. 

The stock was little changed as of 9:04 a.m. in Paris.

(Updates with CEO comments beginning in paragraph 3)

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