Pernod Ricard raises its forecasts
Pernod Ricard has raised its annual forecast for Thursday operating profit due to improved economic conditions. The group of wines and spirits brands owner Ricard, Absolut, Havana Club, said in a statement that its sales showed a growth of 2% at constant exchange during the year ended June 30
Pernod Ricard said however that "given a negative foreign exchange impact of approximately -1% (turned positive in the second half) and a perimeter effect of -3%, primarily related to sales of brand Wild Turkey and Tia Maria, 2009-2010 turnover was slightly down -2%.
He added: "The year was marked by an economic improvement over that of last year, especially during the second half. Pernod Ricard has continued to benefit from its broad portfolio of premium brands. "
Turnover increased by 9% at constant scope and exchange in the second half, with growth estimated at 3% in the fourth quarter alone. Pernod Ricard said that Asia and Latin America are "remained very dynamic." The improvement trend continued in Eastern Europe, the United States and Duty Free markets. The activity continued to decline overall in western Europe (particularly Spain and the United Kingdom, and more recently in Greece). "
For the full year, the company is now targeting organic growth in operating profit of between 3% and 4%, while it expects an increase of 3% previously.
The turnover and the final results of 2009-2010 will be published Sept. 2.