Moody's: European beverage firms set to see profit growth over next 18 months | Progresiv

Despite a number of macroeconomic challenges, European beverage companies, both alcoholic and non-alcoholic, are likely to see profit growth over the next 18 months, according to research from Moody's. The report, Results Support Ratings and Give Credit Quality Boost To Weaker Positioned Companies, followed in the wake of recent results from a number of beverage firms, including Pernod Ricard, Remy Cointreau, Carlsberg Breweries, Diageo and Coca-Cola HBC.

"Good results posted by European beverage companies over the past two weeks reinforce our view that, despite some volatility, sector profits will grow over the next 12 to 18 months, strengthening the credit metrics of some European players," said Paolo Leschiutta, Vice President – Senior Credit Officer at Moody’s.

Moody's said that it expects European beverage companies to 'report profit growth broadly in line with our expectations for the global beverage industry of between 4% and 5% in the next 12-18 months and for currency headwinds to reverse for most companies in 2017'. However, it added that demand in emerging markets remains 'volatile', and results will be impacted by continuing foreign currency volatility. (www.esmmagazine.com)