The French group, the world’s number two in wines and spirits, reported better-than-expected results for its 2022/23 financial year on Thursday. Confident in its future performance, Pernod Ricard also announced several structural changes to reinforce the Group’s strategy.
Pernod Ricard, the world’s second-largest spirits group, announced results on Thursday that exceeded expectations for its 2022/23 financial year ended June 30. It expects a more modest start to the year, with lower sales in America and China.
Sales for the French wine and spirits group came to 12.14 billion euros, recording organic growth of 10%. This performance was driven by advances in all regions. Experts had forecast organic sales growth of 9.3%, in line with a consensus drawn up by Pernod Ricard and shared by JPMorgan.
The company’s operating profit from ordinary activities reached 3.348 billion euros ($3.66 billion), marking an organic increase of 11%. This exceeded analysts’ expectations of a 9.6% increase, as well as the company’s initial forecast of around 10%.
In Asia and the rest of the world, sales growth reached 17%, boosted by a solid performance in India, a recovery in Travel Retail sales, as well as increases in China and Turkey. In the Americas, growth was 2%, while in Europe it was 8%.
Thanks to recurring free cash flow of 1.653 billion euros, the Group is proposing a 14% increase in the dividend to shareholders, bringing it to 4.70 euros per share.
Forecasts and share buy-backs
The owner of the Martell cognac, Mumm champagne and Absolut vodka brands has reaffirmed its medium-term forecasts, targeting sales growth at the upper end of a range from +4% to +7%.
However, the Group expects a decline in performance in China due to ongoing macro-economic challenges. In the Americas, the Group reports difficult comparisons with the previous year, although the overall outlook for the year remains positive. These expectations led to a decline in Pernod Ricard’s share price, down 3.89% to 186.75 euros at 08:21 GMT.
“Although the environment remains challenging for the 2023/24 financial year, I remain confident in Pernod Ricard’s ability to achieve its medium-term objectives,” commented Chairman and CEO Alexandre Ricard.
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Read also>PERNOD RICARD REPORTS INCREASED SALES
Featured photo : ©Pernod Ricard
