PARIS (Reuters) – Pernod Ricard on Thursday reported better-than-expected current operating profit (ROC) and sales in its staggered 2022/23 financial year, despite a difficult environment which is pushing the group to anticipate a “more modest start in the first quarter”.

“The relevance of our growth strategy, the desirability of our brands and the unwavering commitment and agility of our teams have enabled us to gain market share in most countries while strengthening our price levels”, CEO Alexandre Ricard commented in a statement.

Over the 12 months to June 30, current operating profit (COI) amounted to 3.35 billion euros, i.e. organic growth of 11%, higher than the company’s own forecasts, which were aiming for an increase of 10%.

The turnover of the French wine and spirits group amounted to 12.14 billion euros, representing internal growth of 10%, thanks to growth in all its regions. Analysts had expected organic revenue growth of 9.3%, according to a consensus compiled by Pernod Ricard and shared by JPMorgan.

In Asia and the rest of the world, revenue growth amounted to 17%, driven by India, a rebound in “Travel Retail”, China and Turkey. In the Americas region, growth was 2% and in Europe 8%.

However, the group expects a decline in sales in the first quarter in China, due to a difficult macroeconomic environment, and in the Americas region, due to a high basis of comparison, despite prospects for the whole of the year which remain positive.

“Although the environment remains difficult for the 2023/24 financial year, I remain confident in Pernod Ricard’s ability to achieve its medium-term objectives,” said Alexandre Ricard.

The owner of Martell cognac, Mumm champagne and Absolut vodka thus reiterated its medium-term outlook, namely growth in turnover at the top of a range of between +4% and +7%.

The group also announced a share buyback program of between 500 and 800 million euros for the 2023/24 financial year.

(Written by Kate Entringer)

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