Analysis - Pernod Ricard "hiatus" not over yet
Pernod Ricard released its full-year results today
Pernod Ricard is in a “hiatus period” that could last beyond next year, an analyst has said.
Scotch whisky declines in China and a dearth of likely acquisitions will hamper profits growth for the French company until full-year 2015, Nomura's Ian Shackleton said today (29 August). “From FY2015 we see a return to more historical growth rates, assuming more normal momentum in Asia,” Shackleton said.
In 2012-13 full-year results, released earlier today, Pernod's net profits increased by 3% compared to a 9% jump the previous year. Growth in China slowed to 9% as anti-gifting measures hurt high-end Scotch whisky sales in the country.
Shackleton said that Pernod's warning that emerging markets will see “sustained growth albeit to a lesser extent” was focussed on China, adding that a double-digit sales decline for Scotch will continue to drag down growth in Cognac.
“At the very best, it appears that China in FY2014 will be the mirror image of FY2013, with a weak H1 followed by a strong H2,” he said.
Shackleton also said Pernod will see no M&A activity until Alexandre Ricard replaces Pierre Pringuet as CEO in 2015.
Ricard was appointed in August last year to take on the dual role of Pernod's CEO and chairman from January 2015.
To read an exclusive interview with Alexandre Ricard, click here.
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