FRANCE: No "major" M&A for Pernod Ricard - analyst
Pernod is likely to stay away from major M&A for the forseeable future, Nomura said
The French group yesterday (25 October) reported first-quarter group sales growth of 5%, but pointed to a slowdown in some of Asia's emerging markets. Pernod said in April that it had completed the refinancing of the debt it accrued when it bought Vin & Sprit in 2008.
"With the focus still on deleveraging, we do not see the company as active in major M&A," Nomrura said in a note today.
"The historical model of owning 100% of brands and distribution argues against involvement in agency brands or joint ventures, which could grow the business without major capital requirements."
Nomura suggested that Pernod will face some "headwinds" in 2013, with its high exposure to France and Western Europe. It predicted "some slowdown in overall medium-term growth for the company".
"With a strong Q2 comp and a number of technical factors, we estimate Q2 revenues down 2%, with a likely strong rebound in H2," the note said.
Overall, however, Nomura noted: "We continue to see a strong growth dynamic in global spirits."
In this month's management briefing, Ben Cooper looks at the alcoholic drinks industry's attempts to reduce alcohol harm and promote responsible consumption. Part one of this four-part briefing consid...
The fourth and final part of this month's management briefing sees Ben Cooper consider how the future looks for the drinks industry's attempts to deal with alcohol harm and responsible consumption....
This weekend marked the fifth anniversary of Pernod Ricard's acquisition of Vin & Sprit and the Absolut vodka brand. A lot has changed since those heady days of 2008, so how does the race for - and pu...
- SABMiller & Meantime: Notes for the New Owner
- Comment - How to Target Cognac's Mok Generation?
- Analysis - Keurig Kold fails to impress
- Analysis - The Value of Prosecco
- Focus - The Prosecco shortage that isn't
- Whyte & Mackay takes on Flor de Caña in UK
- Diageo takes Baileys, Gordon's marketing in-house
- Carlsberg cuts 180 staff
- Suntory to buy Japan Tobacco beverage unit
- Mixto Tequila poised for "golden age"
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Africa: The Final Frontier for Beer
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review