- Pernod Ricard’s organic sales decreased by 6% compared to an expected 5.06% decline.
- In the Americas, organic sales fell by 5%, performing better than anticipated estimates of a 6.84% decline.
- Sales in Asia and the Rest of the World were down by 8%, missing the projected decline of 4.93%.
- Europe experienced a 3% drop in organic sales, slightly better than the estimated 3.5% decrease.
- Foreign exchange impact was negative at 3%, above the estimated negative 2.06%.
- Total sales amounted to EU2.78 billion, an 8.5% decrease year-on-year, against an expectation of EU2.84 billion.
- Americas’ sales reached EU787 million, down by 8.2% year-on-year but above the estimated EU773.6 million.
- Asia and the Rest of the World’s sales were EU1.18 billion, an 11% drop year-on-year, underperforming the estimate of EU1.25 billion.
- European sales were EU816 million, a 4.6% decline y/y, compared to an estimated EU833 million.
- Sales of Strategic International Brands declined by 10%, while Specialty Brands sales fell by 9%.
- Strategic Local Brands saw a modest increase of 1% in sales.
- The company remains confident in its medium-term framework, targeting organic net sales growth of 4% to 7% and organic operating margin expansion of 50 to 60 basis points.
- Pernod Ricard anticipates a return to organic net sales growth and maintained operating margins in FY25.
- The firm expects a more significant full-year sales decline in China than last year, affecting Asia Travel Retail.
- Technical sales phasing in India is forecasted to fully reverse in the second quarter.
- The quarterly sales results were softer than expected due to challenges in China.
“`
A look at Pernod Ricard Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Pernod Ricard Sa shows a promising long-term outlook. With a Dividend score of 4 and a Momentum score of 4, the company demonstrates strength in both rewarding investors and maintaining a positive market performance. Additionally, its Value, Growth, and Resilience scores stand at 3, indicating a balanced approach towards financial health, expansion, and stability in the face of challenges.
Pernod Ricard SA, a renowned producer of wines and spirits, distributes its wide range of products globally. With notable ratings across various factors, the company appears well-positioned for sustained growth and profitability, making it an attractive choice for investors seeking stability and potential returns in the beverage industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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