Pernod Ricard: targets raised despite FX factors

(CercleFinance.com) - The international spirits group Pernod Ricard saw its interim results hit by the appreciation of the dollar.


However, organic growth remains strong and group management has raised its annual forecasts for underlying operating income.

In H1 2017/2018, to end-December, the French spirits group recorded revenues of 5.1 billion euros. Reported growth (just +0.1%) suffered from a very unfavourable FX effect, as, on a like-for-like basis, growth reached 5.1% (vs. +5.7% in Q1). Management said that performance has accelerated, who particularly cite widespread growth and the impact of the later Chinese new year. In Q2, organic sales growth still reached 4.6% (and -0.8% as reported).

Underlying operating income came in at 1.5 billion euros (organic growth of +5.7%; -0.3% in nominal terms), due to the dollar's depreciation, which is in line with the consensus. Over the full-year, FX factors knocked 180 million euros of underlying operating income.

Finally, net income, group share came in at 1.1 billion euros (+ 25%), particularly due to lower financial expenses and disposals. In underlying terms, earnings amounted to 994 million euros (+4% as reported).

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