Rising demand for cognac and whiskey drives Pernod Ricard - Euro loaded
The growing demand for cognac and whiskey, particularly in Asia, has led to rising profits for the French manufacturer Pernod Ricard in the past financial year. Shareholders should therefore receive a higher dividend, as the world's second largest spirits group after Diageo announced in Paris on Wednesday. The burden was the stronger euro compared to the previous year, which completely consumed the growth. The company is aiming for a further increase in earnings in the new 2018/19 financial year (by the end of June).
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Sales fell by 0.3 percent to just under 9 billion euros in the past fiscal year. In organic terms - i.e. adjusted for currency effects and acquisitions and disposals - sales rose by 6 percent. Growth was driven by rising demand from China, India and the USA. Earnings from continuing operations increased organically by 6.3 percent to just under 2.4 billion euros, at the upper end of the forecast of 4 to 6 percent as announced by the company. Including currency effects, however, this was also negative.
On balance, Pernod Ricard benefited from lower financing costs and increased its profit by 13 percent to 1.6 billion euros. Shareholders are to receive a 17 percent higher dividend of EUR 2.36 per share.
The French announced further growth for the current financial year. Earnings from continuing operations are expected to increase by 5 to 7 percent./nas/tav/fba (dpa)
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