PARIS (Agefi-Dow Jones)–Wine and spirits specialist Pernod Ricard announced on Thursday that it expects organic growth of around 17% in its current operating income (ROC) for its staggered 2021-2022 financial year, after seeing its sales markedly increased in the third quarter.
The group also aims to improve its operating margin for the current financial year. Pernod Ricard’s COI was €2.42 billion in 2020-2021.
“Overall, we expect FY 2021-2022 to have strong sales momentum across all regions, with a rebound in On-trade [ventes dans les bars et restaurants, ndlr]the resilience of Off-trade [ventes destinées à la consommation à domicile, ndlr] and the gradual recovery of Travel Retail” with the lifting of travel restrictions, Pernod Ricard CEO Alexandre Ricard said in a statement.
The CEO of Pernod Ricard however warned that, in “an uncertain and inflationary context”, the fourth quarter should be “less dynamic, impacted by the disruptions linked to Covid in China, the normalization of the phasing effect in the United States and the aftermath of the conflict in Ukraine”.
The group made these forecasts after recording a strong increase in sales in the third quarter and the first nine months of the year.
During the quarter ended at the end of March, sales of the family group increased by 25% over one year in published data, to 2.45 billion euros, said Pernod Ricard in a press release. At constant scope and exchange rates, sales grew by 20%.
According to the consensus established by Factset, analysts expected an average organic growth of 13.3% for the past quarter and a turnover of 2.45 billion euros.
Over the first nine months of the year, Pernod Ricard’s sales reached 8.41 billion euros, up 21% year-on-year on a reported basis and 18% on a like-for-like basis . It benefited from a favorable currency effect of €191 million. For the whole of the 2021-22 financial year, “a favorable currency impact of around 110 million euros is expected on current operating income”, said Pernod Ricard.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 80; [email protected] ed: VLV
PERNOD RICARD FINANCIAL RELEASES:
http://pernod-ricard.fr/54/investors/actualite-financiere
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April 28, 2022 01:34 ET (05:34 GMT)