Blog: Diageo and Pernod - it could be worse
Olly Wehring | 17 February 2009
At first glance, Pernod appears to have done a better job at reassuring investors. Its share price rose by 6% on Friday (13 February) after the company announced a 5% organic increase in net sales. Diageo, which announced a corresponding 3% sales rise a day earlier, saw its share price drop after the firm lowered its guidance for full-year organic operating profit guidance and warned that it may cut jobs as part of a cost savings programme.
Pernod, too, lowered its full-year operating profit guidance, from an expected 8% to a range of between 5% and 8%. Diageo's revised guidance was more marked, down to a range of 4%-6%, compared to 7%-9% previously.
Both firms have different focuses for the remainder of the year and into fiscal 2010. Pernod, following its acquisition of Vin & Sprit last year, is very much oriented towards trimming its net debt. Diageo, meanwhile, which has maintained a strong cash flow, remains in the market for further acquisitions, should the right opportunity arise.
As far as the health of the drinks markets goes, both firms' results indicate that, while a slowdown has occurred across key European and North American markets, things could be a lot worse.
For those people looking to the Red Planet as shining utopia away from all things earth, look away now....
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Soft drinks is losing the recycling game
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Pernod Ricard posts solid YTD sales jump - results
- Edrington shifts innovation to US in shake-up
- Pernod Ricard YTD fiscal-2017 sales performance
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Flavoured Powder Drinks in 2017: Confronting an Ageing World