French drinks firm Pernod Ricard raises 2021 profit forecast

Jameson owner expects stronger recovery as Covid-19 curbs are lifted

Photograph: iStock

Photograph: iStock

 

Pernod Ricard said it now expected organic profit growth of about 16 per cent for its 2020/2021 fiscal year, up from a previous April forecast of 10 per cent, as the French drinks group saw a stronger than expected recovery as Covid-19 curbs are lifted.

The owner of Jameson, Mumm champagne, Absolut vodka and Martell cognac had already told an investor presentation on Tuesday that it was confident about its prospects in Asia, helped by cognac and Scotch whisky demand in China.

And Pernod Ricard’s third-quarter results, published two months ago, had beaten analysts’ expectations.

“The pace of recovery is proving stronger than anticipated (...) Demand is accelerating as restrictions are progressively lifted,” the group said in a statement on Wednesday.

At Tuesday’s market close, Pernod’s share price was up 14.8 per cent since the start of the year, versus +12.8 per cent for the Stoxx 600 Food & Beverage index and +21.7 per cent for world leader and main rival Diageo. – Reuters