Pernod Ricard listens to investor activists
The French spirits group has raised its profit growth outlook for 2018-2019, helped by strong demand for premium cognac in China
Paris — French spirits group Pernod Ricard, which is being targeted by activist investor Elliott Management, vowed to improve profit margins and shareholders’ returns in a new three-year strategy plan. The world’s second-biggest spirits group behind Diageo also raised its profit growth outlook for 2018-2019 after beating first-half operating profit forecasts helped by strong demand for premium cognac in China. “We had the best first half since 2011. Our performance is accelerating. My priority is to create durable value and I hope this will please all our shareholders,” Alexandre Ricard told Reuters. Ricard also said he had no plans, as suggested by some analysts, to sell the group’s champagne assets, which include Mumm and Perrier-Jouët champagnes. Elliott, which has built a stake of just more than 2.5% in Pernod, has called on the family-backed group to raise profit margins to bring them more into line with Diageo. Elliott also wants Pernod to improve corporate governance and has ...
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