Pernod Ricard forecasts a decline in the face of the coronavirus
Despite a good first half, Pernod Ricard has lowered its profit forecasts for 2020 as a result of the coronavirus.
Recently announced, the major spirits companies feared a drop in their numbers due to the coronavirus. Pernod Ricard, France’s number one in spirits (#2 worldwide), fears that the outbreak will weigh on its sales in the third quarter.
The company has warned about its annual results, and anticipates internal growth in operating profit between 2% and 4% in 2019-2020. These figures are in contrast to a previous forecast of between 5 and 7%.
Alexandre Ricard, CEO of the company, said: “The environment in the second half of the year remains particularly uncertain on the geopolitical front. With the outbreak of the COVID-19 epidemic. Although we cannot predict the duration and impact of the epidemic, we remain confident about our strategy. Our top priority is the health and well-being of our employees and business partners.
I salute the exemplary attitude of our teams in this difficult period. We support their efforts as well as those of the Chinese people and authorities to contain the epidemic. Assuming a very significant impact from COVID-19, mainly in the third quarter, we anticipate at this point internal growth in current operating income for the 2019-2020 financial year. In other words, between +2% and +4% and we will continue to monitor the situation closely. We are maintaining our strategic path and priority investments. To be able to achieve the optimization of value creation in the long term“.
A solid first part
1.79 billion in the first half, up 4.3% and more than the market’s expected increase of 2.8%. 5470 million in organic growth of 2.7%, and 5.6% in public, with a favourable exchange rate effect due to the appreciation of the US dollar and emerging currencies against the euro.
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