GLOBAL: Pernod Ricard's growth potential brighter than Diageo's - analyst
Pernod is benefitting from the growth of premium Cognac in China
In a client note today (7 January), Bernstein Research analyst Trevor Stirling said that Diageo has the “upper hand” in Scotch whisky, particularly in LatAm, but that Pernod benefits from very strong profitable growth from premium Cognac in China. Stirling added that Pernod has “lower exposure to the PIIGS (Portugal, Ireland, Italy, Greece and Spain) in Europe”.
“Hence, Pernod Ricard offers slightly superior long-term top-line growth, whilst Diageo offers more operating leverage in the short-medium,” Stirling said.
“Overall, we have a slight preference for Pernod Ricard given current relative valuation and the fact we believe Pernod Ricard's growth model is perhaps slightly more top-line oriented.”
Concluding, Stirling said that, overall, Bernstein has a “positive long-term stance” on the European beverages sector, including brewers.
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 ...
The drinks sector is particularly fertile ground for mergers and acquisition activity, with a number of big businesses accustomed to making acquisitions to spur growth, new players popping up all over...
In a recently-published global briefing 'Diageo in Spirits', Euromonitor International's senior alcoholic drinks analyst Jeremy Cunnington takes a look at what are the challenges facing Diageo in spi...
- SABMiller's troubles fuel M&A rumours
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Focus - Remy Cointreau's H1 Performance by Brand
- Three Questions for the Drinks Industry
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- Moet Hennessy sales falter in YTD
- Diageo Q1 sales dip "in line with expectations"
- Diageo to appeal Parrot Bay UK TV ad ban