Schnapps producer Pernod Ricard continues to benefit from boom in China and India

30-Aug-2019 - France

Thanks to high demand in China and India, the business of the French schnapps producer Pernod Ricard continues to perform very well. After profits in the 2018/19 financial year had not climbed as strongly as in seven years, the Group expects a similarly strong continuation. The manufacturer of brands such as Absolut Vodka, Havana Club rum and Jameson Whiskey announced on Thursday in Paris that it expects its operating result for the current year to increase by between five and seven percent adjusted for special effects.

In 2018/19, operating profit adjusted for currency translation effects increased by nearly nine percent to 2.6 billion euros. On balance, profit fell by eight percent to 1.5 billion euros - but this was mainly due to special effects. Sales increased by five percent to 9.2 billion euros in the past fiscal year. The growth driver was Asia, where revenue grew at a double-digit rate, while it stagnated in Europe and grew only slightly in the USA. The company also significantly increased its dividend and announced the repurchase of its own shares for one billion euros.

This could give further impetus to Pernod Ricard paper. On the stock exchange, the share was recently one of the high flyers anyway. Only last week, the share reached the highest level in its history at 168.10 euros. Since August 2018, the stock market value of the company has risen by around a fifth to 44 billion euros - no other French standard stock rose so strongly in this period./zb/tav/jha (dpa)

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https://www.yumda.com/en/news/1162561/schnapps-producer-pernod-ricard-continues-to-benefit-from-boom-in-china-and-india.html