Diageo and Pernod report Q1s later this month

Diageo and Pernod report Q1s later this month

Diageo and Pernod Ricard’s Q1 results could mark a “bend in the road” as both groups face tough comparables amid continuing consumer uncertainty, according to an analyst.

In a note issued earlier today (12 October), Investec said the “testing” comparables for the two spirits giants and the “state of the consumer” in developed and developing markets is leading it to be “cautious” over the results. Diageo is due to report first-quarter numbers on Wednesday (17 October), with Pernod following on 25 October. 

However, Investec said it anticipates “solid" organic net sales growth for both groups, of 4% for Diageo and 5% for Pernod.  

No change is expected for Diageo’s medium-term guidance of 6% annual organic sales growth, the analysts said. On Pernod, the note added: “Pernod will give FY13 guidance at the Q1, which needs to be judged against FY12’s ‘close to 8%’”. 

The state of developing markets are “key to sentiment”, Investec added, as "both companies have a medium term target of 50% sales exposure to these regions".

The note added: "We remain comfortable buyers on a 12-month view".