PARIS (Reuters) – Pernod Ricard on Thursday reported better-than-expected results for its staggered 2022/23 fiscal year but said it anticipated a “more modest start to the first quarter” with lower sales in America and China.

The group expects a decline in China due to a difficult macroeconomic environment. In the Americas region, he evokes a high base of comparison despite the outlook for the full year which remains positive.

These forecasts weigh on the share price of Pernod Ricard, so the share fell 3.89% to 186.75 euros at 08:21 GMT.

“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 Chairman and CEO Alexandre Ricard in a press release.

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. This program is in line with expectations, write Credit Suisse analysts in a note.

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%.

(Written by Kate Entringer)

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