Pernod Ricard, the second largest beverage group in the world, saw substantial growth last year thanks to China and India. Profit however remains below expectations due to higher prices of raw materials.
Growth despite "geopolitical and monetary uncertainties"
Pernod Ricard, the world's second largest spirits producer after Diageo, has increased its turnover by 6 % in the broken financial year 2017/2018. China and India performed particularly well and saw their turnover rise respectively 17 and 14 %. In the United States, growth was robust at 4 %. In Europe, however, France and Spain displayed disappointing results.
The profit figures too were a setback for analysts: in the past financial year, which ended on 30 June, the operating profit increased in line with expectations by 6.3 % to 2.36 billion euros. However, this year the producer of Absolut vodka and Jameson whisky expects operational profit growth of between 5 and 7 %, compared to 7.4 % for analysts. The beverage group says it faces geopolitical and monetary uncertainties worldwide, while the cost of raw materials is rising. The makers of Ricard and Chivas Regal especially refer to the prices for cognac grapes and agave for tequila.