Shares at Pernod soar on back of strong Q3 figures
Published 30/04/2010 | 05:00
Shares in Pernod Ricard, the French owner of Jameson, jumped yesterday after the company said there had been a marked upturn in its third-quarter performance and boosted its earnings guidance for the current financial year.
The stock closed up 1.9pc at €64.18, having risen earlier during the session by as much as 3.2pc.
The company said it expects profit from recurring operations to rise by about 3pc this financial year. That's higher than the 1pc to 3pc growth it previously forecast. Jameson, one of Pernod Ricard's 15 strategic brands, performed strongly during the last quarter according to the company, with the value of sales of the whiskey rising 11pc during the period.
That made it the second-best performer under that metric among strategic brands after Martell, which is also part of Pernod Ricard's stable. The volume of Jameson sales was up 8pc.
Pernod Ricard said there had been a "slight decline" of Jameson sales in Ireland during the quarter, but that there was a "good performance" for the brand in France and Scandinavia. Overall group sales were hit in Europe due to the "difficult situation" in Ireland, Spain and the UK, according to Pernod.
"We continue to think investors underestimate how geared Pernod is to a worldwide economic recovery," said Erwan Rambourg, an analyst at HSBC. "Consumers are likely to trade more, notably in bars and restaurants, if the economy recovers."
Volume sales of the group's 15 strategic brands were 1pc lower year-on-year during the quarter, while the combined value of sales was up 3pc.
Consolidated sales for the wider group during the third-quarter rose 14pc year-on-year to €1.54bn. This was as a result of 16pc organic growth, a favourable €30m foreign exchange effect, and despite a 3pc negative group structure impact.
The 15 strategic brands account for 58pc of Pernod Ricard's total sales.
There had been a "significant consumption increase in new economies", said Pernod Ricard, with an uplift in sales also pronounced in its key markets including the United States and Russia, and in duty-free sales.