- Pernod Ricard’s Q3 organic sales showed no growth, missing the estimated rise of 2.82%
- In the Americas, organic sales decreased by 7%, against the estimated decrease of 3.71%
- Asia and the Rest of World saw organic sales increasing by 8%, but lower than the estimated 9.23%
- Europe faced a slump in organic sales by 6%, double the estimated decrease of 2.97%
- Foreign exchange impact was -5%, worse than the estimated impact of -4.01%
- Sales in Europe were EU2.35 billion, down by 1.8% from the previous year, and short of the estimated EU2.48 billion
- Americas saw sales of EU714 million, a drop of 4.5% from the previous year, and below the estimated EU784.9 million
- Asia and the rest of the world reported sales of EU1.02 billion, a rise of 2% from the previous year, but fell short of the estimated EU1.06 billion
- European sales were at EU617 million, a decrease of 4.6% from the previous year, and below the estimated EU 628.8 million
- Nine-month results show an interim dividend per share of EU2.35
- For the year, the company sees about 1% growth in profit from recurring operations, with an estimated growth of 0.77%
- Expectations for Q4 net sales are dynamic, showing improvement over 9-month results, and leading to broadly stable FY organic net sales
- The company expects to continue investing in strategic inventories at a similar level to FY23 and increasing spending on Capex to around €800m
- Added expectation of negative FX impact partially offset by perimeter effect in FY24
- Predicts FY free cash flow will reflect lower profit from recurring operations and an increase in strategic investments
- The company plans to complete around €300m share buyback in FY, with about €150m completed in the first half
- Company remains confident in a medium-term framework of 4% to 7% top line growth, leaning towards the upper end of the range
A look at Pernod Ricard Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma’s Smart Scores, Pernod Ricard SA, a company that produces wines and spirits globally, shows a promising long-term outlook. With a Value score of 3, it indicates that the company is considered moderately valued relative to its peers. Additionally, Pernod Ricard scores a 4 in both Dividend and Growth, highlighting strong performance in providing dividends and potential for future growth. The Resilience and Momentum scores are at a decent level of 3, indicating stability and solid market performance.
Overall, Pernod Ricard SA seems well-positioned for the future based on the Smart Scores analysis. With a good balance across key factors such as Dividend, Growth, as well as Resilience and Momentum, the company appears to have a positive trajectory ahead in the competitive wines and spirits market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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