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Wednesday, August 29, 2018

French Spirits Producer, Pernod Ricard gives investors a 17% dividend hike

Paris — French spirits maker Pernod Ricard On Wednesday, said sales and profit growth accelerated in the full year 2017-2018, driven by strong demand in China and India, as well as robust sales in the US, its top market.


The maker of Martell cognac
and Mumm champagne handed investors a 17% dividend hike.

For the year ahead, Pernod — the world’s second-biggest spirits group behind Britain’s Diageo — forecast further profit growth in spite of an uncertain geopolitical and monetary climate. It gave no further details.

Pernod Ricard predicted a "very strong" first quarter, saying it would benefit from a low comparison base in India where it has faced setbacks, including a ban on liquor outlets.

It also forecast a boost in the July to September period from an earlier Mid-Autumn Festival in China, where it banks on a thirst for premium drinks from a fast rising middle-class.

Pernod Ricard forecast underlying profit growth from recurring operations of between 5% and 7% for the full year ending June 30, 2019. This compares with the 6.3% rise achieved in the 2017-2018 financial year, when profits came in at €2.358bn — in line with an average forecast of €2.36bn in an Inquiry Financial poll for ThomsonReuters.

Sales growth for the 2017-2018 full-year accelerated to 6% from 3.6% the previous year, spurred by a 17% jump in China, 14% in India and 4% in the US.

Reuters

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