Pernod Ricard warns on profit after modest FY | Progresiv
Pernod Ricard has warned that the strength of the euro will hurt its profits in the current fiscal year, even as it reported a modest set of results for its last year. 
For the 12 months to end-June 2017, underlying sales were up 3.6% to 9 billion euros (+4% reported), while net profit grew by 13% to 1.4 billion euros.
The group was helped by a 7% rise in sales in the Americas (+7% organic), with Europe recording a 3% increase (+3% organic), and Asia/Rest of World registering a 2% increase (+1% organic), helped by the first rise in sales in China since 2013.
Sales of its Strategic Brands were up 4% on an organic basis, with volumes growing by 5%, helped by growth at all brands excepting Chivas Regal.
The world’s second-largest spirits group expects underlying profit to grow by 3%-5% for the year, in line with its long-term targets, but it also warned that currency effects will hurt profits this year to the tune of 125 million euros. (www.kamcity.com)
