France's Pernod Ricard Q1 sales fall marginally, flags weakness in US and China markets
France's Pernod Ricard Q1 sales fall marginally, flags weakness in US and China markets
Overview
France-based spirits and champagne maker's Q1 FY27 net sales fell 0.9% organically
Sales declined in US and China due to inventory adjustments; India saw strong double-digit growth
Company expects FY27 organic net sales to be broadly stable amid market uncertainty
Outlook
Pernod Ricard expects FY27 organic net sales to be broadly stable
Company projects declines in US and China, with ongoing growth in Rest of World, notably India
Medium-term organic net sales growth seen near lower end of +3% to +6% range for FY27-29
Result Drivers
INVENTORY ADJUSTMENTS - Co said sales in US and China declined in Q1 due to inventory adjustments
STRONG INDIA DEMAND - Co said India sales grew +19% in Q1, driven by strong consumer demand and premiumisation
PRODUCT INNOVATION - Co highlighted new product launches including Malibu Pink and Skrewball Peanut Butter & Jelly whiskey as supporting performance
Company press release: ID:nBw2jPQZka
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales |
| EUR 2.23 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the distillers & wineries peer group is "buy."
Wall Street's median 12-month price target for Pernod Ricard SA is €69.50, about 5.1% above its October 14 closing price of €66.10
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 12 - China gloom hits LVMH, dims hopes of luxury revival
Oct 14 - French cosmetics facing delays clearing China customs, says industry association
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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France's Pernod Ricard Q1 sales fall marginally, flags weakness in US and China markets