Pernod Ricard’s profit fell due to falling alcohol sales – Kommersant
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The French concern Pernod Ricard, the second largest producer of alcoholic beverages in the world, published report for the first half of the 2023-2024 financial year.
Sales for this period fell by 3% to €6.59 billion, which coincided with analysts’ forecasts. Profit from operating operations also fell 3% to €2.14 billion, although analysts had expected a larger decline of 5.1%. Sales fell the most in China – by 9% and in the USA – by 7%. Wine sales decreased by 11%, with the most significant declines noted in the US, UK and Canadian markets.
As the manufacturer notes, the global alcohol market is now experiencing a period of normalization after a sharp increase in demand for alcohol during the COVID-19 pandemic. In this regard, Pernod Ricard adjusted its forecasts for the current financial year. If earlier sales growth was expected, now the company believes that they will remain at the same level, and profits will increase slightly. The company intends to buy back €300 million worth of shares from shareholders this year, in addition to those that were already bought back in the first half of the year for €150 million. Pernod Ricard shares are rising by 5.7% today at the opening of trading in Europe.
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