Analysis - Pernod Ricard to catch China growth with broader portfolio
Pernod Ricard released its Q1 results yesterday
Pernod Ricard will extend its portfolio in China as sales in the country return to solid growth in two years, an analyst has predicted.
UBS analyst Melissa Earlam said the French group, which yesterday posted “sharp declines” in Q1 China sales, should post an 8% lift in FY 2015. In FY 2016, Pernod will post a 12% sales growth, Earlam estimated.
Pernod blamed its China sales drop on anti-extravagance measures put in place at the beginning of the year. The measures, which have hurt other international spirits companies, helped drive Pernod's overall 9% sales dip in the first quarter. China makes up about 16% of Pernod's operating profits.
Earlam said Pernod will create “a wider product portfolio to drive the growth”, with recovery first expected in Martell's VSOP and Cordon Bleu Cognac brands. The analyst also said recovery will lag in KTV and banqueting channels compared to on- and off-trade.
In a call with analysts yesterday, Pernod's CFO Gilles Bogaert said that sales in some channels in China have dropped by 50% to 60% without identifying which channel.
I'm calling it, people. Today is the day that I feel confident enough to conclude that the China 'crisis' is not a blip....
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
How long is a satisfactory term for a CEO? Of course, there's two answers to this question: One if the company is publicly-listed, the other if it's a privately-held firm. Then, of course, there is th...
Over the last 10 years of rapid acquisitions, Pernod Ricard has built a strong portfolio of premium brands on a global scale. Most of its brands enjoy a leading position in international markets. The ...
With very limited resources for expansion through acquisition until at least 2015, Pernod Ricard’s key focus has to be through organic growth. The profile looks at how its current portfolio of brands ...
- Comment - Heineken's 'No' Cuts SABMiller Options
- Irish whiskey eyes a slice of Scotch's global pie
- Scottish Independence and Scotch Whisky
- SABMiller spurned by Heineken: The start of the en
- Can the New World Learn a Lesson from the Old?
- Patron Spirits' Patron Citrónge Lime
- Heineken rejects SABMiller purchase proposal
- Diageo's Special Releases 2014
- Wm Grant CMO to head Orangina Scweppes Int'l
- LIVE BLOG: Industry responds to Scotland 'No' vote