FRANCE: Pernod Ricard expects flat FY sales, profits growth
Organic net sales are likely to be "close to flat" for the 12 months to the end of June, compared to a year earlier, Pernod said in a trading update today (17 July).
Sales were dragged down by destocking and a fall in consumer spend in the second half of the year, falling by 6% in the third quarter and by around 3% in the fourth quarter, the French drinks giant said. Net sales on a reported basis are likely to be up 9% for the full-year, due to the added contribution of Vin & Sprit, and particularly Absolut vodka.
The sales performance for the fourth quarter is better than some analysts predicted.
A rise in like-for-like operating profits for the year is set to be at the lower end of the firm's guidance range, of between 3% and 5%.
This is due to "steady sales, combined with strictly controlled advertising and promotional expenditure and structure costs", Pernod said.
Net profits from recurring operations are expected to grow by 10% for the year, due to the "significant contribution of Absolut" and debt control.
The major emerging markets of China and India have continued to grow strongly throughout the year, said the group, which is the world's second largest wine and spirits group and owns Chivas Regal Scotch whisky, Jameson Irish whiskey and Havana Club rum.
Pernod will report its full-year results on 3 September.
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