For 2023–24 fiscal year, Pernod Ricard aims for ‘generally stable’ turnover

Pernod Ricard declared on Thursday that, following a challenging first half, it was targeting a largely stable turnover for the current fiscal year. The company is counting on a rebound in demand in the crucial markets of China and the US in the latter half.

The company, which also owns Absolut vodka, Mumm champagne, and Martell cognac, said that a low single digit increase (margins) in current operating profit (ROC) will be achieved throughout the year with stringent control over costs.

Diageo, the world's second-largest spirits company, plans to repurchase 300 million euros' worth of shares this year, following a 150 million euro buyback in the first half.

In the first half of the 2023–2024 fiscal year, Pernod Ricard reported a 3% decrease in turnover to 6.59 billion euros. A 3% internal decline to 2.14 billion euros was indicated by the ROC. Analysts had projected an organic EBIT decline of 5.1% and a turnover decline of 2.9%.

According to the group, distributors in China displayed "cautious" morale prior to the Lunar New Year last week, despite a 9% decline in sales in the first half of the year.

Sales of Pernod Ricard have increased significantly over the last two years due to price increases and domestic consumption during the COVID-19 pandemic, much like those of its competitors Diageo and Remy Cointreau.