Pernod Ricard: 4% growth in the first quarter of 2019/2020

Paris (awp / afp) – The world's second largest spirits company Pernod Ricard saw its turnover grow by 4% in the first quarter of 2019/20, to 2.48 billion euros, a progression that benefited from positive exchange.

Pernod Ricard's organic growth remains "moderate" at 1.3%, the company said in a statement on Thursday. The positive currency effect enabled the group to earn 57 million euros in the quarter, mainly thanks to the US dollar.

The start of the staggered year was marked by a good start of sales in the United States, up 6% to 674 million euros, "favored by anticipated sales", as well as in Asia and particularly in China (+ 6% to 1.1 billion euros) despite a "very high basis of comparison".

Europe is also up 3% to 694 million euros, "thanks to strong sales in Eastern Europe and a return to growth in Western Europe," the source said.

Sales at the airports ("travel retail"), however, fell by 6% compared to their very good performance a year earlier.

The group confirms its internal growth target of current operating income (OCR) for the year from + 5% to + 7%. For the full year, "a significant positive currency impact on the ROC is expected," adds Pernod Ricard.

In addition, Pernod Ricard, which announced at the end of August its intention to implement a share buyback program of up to one billion euros for the years 2019/20 and 2020/21, has concluded a contract of purchase of shares with an investment services provider, for a first tranche of up to 150 million euros, he says.

The redemption period will start on October 18th for a period up to December 18th at the latest. Shares thus redeemed will be canceled.

afp / jh