Pernod Ricard Backs Guidance Despite Lower Sales
By Andrea Figueras
Pernod Ricard posted a decrease in sales for its fiscal third quarter as it grapples with soft consumer sentiment in China and continues to reduce inventories in the U.S, and backed its guidance.
The maker of Absolut vodka and Martell cognac said Thursday that for the three months to the end of March sales fell 2% in reported terms to 2.35 billion euros ($2.51 billion) compared with the year-earlier period.
Analysts had forecast quarterly sales of EUR2.4 billion, according to a poll of estimates compiled by FactSet.
The performance was hit by weak results in China, due to a difficult macroeconomic environment, and in the U.S., as trade inventory levels are adjusted, the company said.
The French distiller backed its mid-term financial targets, including reaching the upper end of between 4% and 7% of net sales growth and organic operating leverage of 50 to 60 basis points.
For the current year, the company expects broadly stable organic net sales, while it intends to continue to focus on growth and operational efficiencies, it said.
Pernod Ricard said it will pay an interim dividend of EUR2.35 per share in July, while the final dividend will be subject to the decision at the company's annual general meeting on Nov. 8.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
April 25, 2024 02:17 ET (06:17 GMT)
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