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Pernod Ricard<\/strong>, the world’s second-largest spirits group, announced results on Thursday that exceeded expectations for its 2022\/23 financial year ended June 30<\/strong>. It expects a more modest start to the year, with lower sales in America and China.<\/p>\n <\/p>\n Sales for the French wine and spirits group came to 12.14 billion euros<\/strong>, recording organic growth of 10%<\/strong>. This performance was driven by advances in all regions. Experts had forecast organic sales growth of 9.3%<\/strong>, in line with a consensus drawn up by Pernod Ricard and shared by JPMorgan<\/strong>.<\/p>\n <\/p>\n The company’s operating profit from ordinary activities reached 3.348 billion euros<\/strong> ($3.66 billion), marking an organic increase of 11%<\/strong>. This exceeded analysts’ expectations of a 9.6%<\/strong> increase, as well as the company’s initial forecast of around 10%.<\/strong><\/p>\n <\/p>\n In Asia and the rest of the world, sales growth reached 17%<\/strong>, boosted by a solid performance in India<\/strong>, a recovery in Travel Retail sales, as well as increases in China and Turkey<\/strong>. In the Americas<\/strong>, growth was 2%<\/strong>, while in Europe<\/strong> it was 8%.<\/strong><\/p>\n <\/p>\n Thanks to recurring free cash flow of 1.653 billion euros<\/strong>, the Group is proposing a 14%<\/strong> increase in the dividend to shareholders, bringing it to 4.70 euros per share<\/strong>.<\/p>\n <\/p>\n The owner of the Martell<\/strong> cognac, Mumm<\/strong> champagne and Absolut vodka<\/strong> brands has reaffirmed its medium-term forecasts, targeting sales growth at the upper end of a range from +4% to +7%.<\/strong><\/p>\n <\/p>\n 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<\/strong> at 08:21 GMT.<\/p>\n <\/p>\n “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,”<\/em> commented Chairman and CEO Alexandre Ricard<\/strong>.<\/p>\n <\/p>\n\u2028\u2028\t\tForecasts and share buy-backs<\/h2>\n