Pernod Ricard Eyes Higher Profit This Year as 3Q Sales Pick Up Pace

By Joshua Kirby

Pernod Ricard SA said Thursday that it expects double-digit growth in operating profit for the current fiscal year, despite global pressures, as sales accelerated in the third quarter.

The French drinks group is aiming for profit from recurring operations to grow by around 17% at constant currency in fiscal 2022, on a wider operating margin. Last year, Pernod Ricard booked operating profit of 2.42 billion euros ($2.56 billion).

The maker of Absolut vodka and Martell cognac said performance in the fourth quarter will be affected by the Ukraine crisis, normalization in the U.S. and pandemic-related disruption in China, Chief Executive Alexandre Ricard said. Nevertheless, the company continues to expect strong sales growth for the full year, Mr. Ricard said.

In the third quarter to end-March, the French drinks group's sales rose 20% organically to EUR2.45 billion, from a 14% increase the previous quarter. The company had been expected to make quarterly sales of EUR2.3 billion, according to a poll of analysts' estimates compiled by FactSet.

Growth was driven by the Americas region, which posted a 24% increase in the quarter. Asia/Rest of World sales grew by 17%, while Europe rose by 20%, though with some deceleration in March as a result of the Ukraine crisis, Pernod Ricard said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

April 28, 2022 02:11 ET (06:11 GMT)

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