PARIS (Reuters) – Pernod Ricard announced on Thursday that it was aiming for generally stable turnover for the current financial year, after a difficult first half, banking on an improvement in demand in the key markets of China and the United States in the second semester.
The group, which owns Martell cognac, Mumm champagne and Absolut vodka, said strict discipline on overheads would help margin expansion, with low single digit growth. ) of the current operating profit (ROC) for the whole year.
The world number two in the spirits sector, after Diageo, will buy back 300 million euros worth of shares this year, after 150 million euros in the first half.
Pernod Ricard reported in the first half of its 2023/24 financial year a turnover down 3% to 6.59 billion euros. The ROC showed an internal decrease of 3% to 2.14 billion euros. Analysts expected an organic decline of 2.9% for turnover and 5.1% for EBIT.
For China, where sales fell 9% in the first half, the group estimates that distributors showed “cautious” morale ahead of the Lunar New Year last week.
Pernod Ricard, like its rivals Diageo or Remy Cointreau, has seen strong growth over the past two years, with sales boosted by domestic consumption during the COVID-19 pandemic and price increases.
(Report by Dominique Vidalon, by Kate Entringer)
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