Pernod Ricard raises dividend after year-end net profit growth

French alcoholic beverage manufacturer Pernod Ricard published FY 2022-2023 results. In general, the figures were slightly higher or in line with analysts’ expectations. Sales were up 13% to €12.1bn, and reported net income was up 13% to €2.26bn. share (€9.11) — by 2.5%.

The most popular categories of Pernod Ricard products in the year ended were Scotch whiskey (net sales increased by 34%), cognac and brandy (by 17%), Irish whiskey (by 13%). The company expects alcohol sales to decline in China and the US in the first quarter of the current fiscal year due to difficult macroeconomic conditions. At the same time, Pernod Ricard confirmed its medium-term forecasts for net sales growth of 4-7%. In addition, the manufacturer raised dividends to €4.7 per share (by 14%) and announced a buyback of securities in the amount of €500-800 million.

The results of Pernod Ricard were described by Citi analyst Simon Hales as “mixed”. However, he noted in the comments for The Wall Street Journalthat investors can take comfort in further strengthening organic sales growth, confirmation of the company’s mid-term guidance and an expansion of its share buyback program in the next fiscal year. Shares of Pernod Ricard reacted to the company’s report with a fall of 2.69%.

Alena Miklashevskaya