(Bloomberg) -- Pernod Ricard SA raised its forecast of full-year earnings growth, shrugging off a slowdown of its sales growth in the third quarter.
- The company raised its profit-growth target to about 8 percent from a range of 6 percent to 8 percent.
- Third-quarter organic sales growth was 2.5 percent. Analysts expected 3.1 percent.
Key Insights
- Sales slowed in the third quarter due to deteriorating conditions in France and a move to slash inventory levels in the U.S., issues that Pernod Ricard had already flagged.
- The distiller's commitment to acquisitions of fast-growing, high-margin brands is helping it become more profitable as it boosts its presence in attractive categories. Earlier this week, the company acquired Malfy, a brand of flavored gins.
- The slower growth is the first time Pernod Ricard underperformed expectations since activist investor Elliott Management Corp. took a stake in the company late last year.
Market Reaction
- Pernod Ricard's shares fell as much as 1.1 percent to 154.65 euros in Paris trading but later were about unchanged. The stock had gained 8.6 percent so far this year.
Get More
- See more details.
- Read the statement.
To contact the reporter on this story: Thomas Buckley in London at tbuckley25@bloomberg.net
To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John J. Edwards III
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