Pernod Ricard wary over geopolitics on slow vodka
Underlying profit growth from recurring operations was lower than consensus expectations of 7.4% for the maker of Absolut vodka and Jameson whiskey
Paris —French spirits maker Pernod Ricard has predicted lower than expected profit growth in this financial year, briefly knocking its shares to a four-month low. The group, whose brands include Absolut vodka and Jameson whiskey as well as the aniseed liqueur from which it draws its name, saw underlying profit growth from recurring operations of 5% -7% for the year ending June 30 2019, below consensus expectations of 7.4%. Its shares fell as low as €135, their lowest since April, before recovering to be down 0.3% at €137.95 in early morning trade on Wednesday. Pernod, the world’s second-biggest spirits group behind Britain’s Diageo, said that it faced geopolitical and monetary uncertainties as well as pressure from higher costs of commodities such as agave for tequila and grapes for cognac. For the year ended June 30 2018 profit rose to €2.36bn after strong demand in China and India as well as robust sales in the US, its top market. The outcome was in line with an average forecast o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.