Pernod Ricard (PERP.PA), a French spirits company, announced a larger-than-expected decrease in third-quarter sales but said it was optimistic of a positive 2022/2023 result, bolstered by “very strong” fourth-quarter sales.
Pernod, the world’s second-largest spirits firm behind Diageo (DGE.L), expects Chinese consumer demand to recover further after COVID-19 limitations in the fourth quarter. As a result, it projected pricing hikes in the US and China based on better comparables.
In its fiscal year ending June 30, the owner of Mumm champagne, Absolut vodka, and Martell cognac expected organic profit growth of 10% from recurring operations and an operating margin increase.
Sales fell 2.2% on a like-for-like basis to 2.391 billion euros ($2.64 billion) in the three months ended March 31, below analysts’ estimates of a 0.5% rise.
High year-ago comparables in the US and weak festive season demand for Martell cognac in China drove the third-quarter result. However, it stated March Martell sales returned substantially.
Sales rose 7.6% to 9.507 billion euros in nine months. This follows a 12% organic revenue increase in the first half. July 1 is Pernod Ricard’s fiscal year.
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