News

FRANCE: No "major" M&A for Pernod Ricard - analyst

Most popular

Hard seltzers pave the way for 'soft seltzer'?

What will Coca-Cola Co's priorities be? - analysis

Top US craft brewers in 2020 - data

The rise of adaptogens in soft drinks

Constellation Brands in fiscal-2021 - preview

MORE

Pernod Ricard remains unlikely to be involved in any "major" M&A activity while its concentrates on delevergaing, according to an analyst. 

//i4.progressivedigitalmedia.com/1/pernod.jpg

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.

But, while its competitor Diageo is currently eyeing two significant acquistions, analyst Nomura has predicted that Pernod will not follow. 

"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."


Sectors: Spirits, Wine

Companies: Pernod Ricard, Ricard, Diageo

Related Content

Why Treasury Wine Estates' woes don't equate to a Pernod Ricard purchase - comment

Why Treasury Wine Estates' woes don't equate to a Pernod Ricard purchase - comment...

"Not being in the American whiskey category has been something we wanted to change" - just-drinks sp...

Why Diageo & LVMH's mooted move for Pernod Ricard won't wash - just-drinks thinks

Why Diageo & LVMH's mooted move for Pernod Ricard won't wash - just-drinks thinks...

Will 2020 see Campari Group back on the M&A hunt? - analysis

Will 2020 see Campari Group back on the M&A hunt? - analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?