The second largest producer of alcoholic drinks in the world – Pernod Ricard, reported an annual profit in line with analyst estimates after a better performance in Spain and the USA. The company forecast a profit growth this fiscal year, reported Bloomberg.
Operating profit of Pernod Ricard rose to 2.28 billion euros in the 12 months to the end of June, announced the Paris-based company in a statement on Thursday. The growth is 2% of an organic base. Pernod expects growth between 2% and 4% this year.
“Despite an environment that was more difficult than anticipated, we have delivered the guidance announced in February, proof of everyone’s commitment, which I would like to commend. We are seriously committed to the Allegro project: this operational efficiency project must enable us to maximise our future growth while generating a hard figure of €150 million of savings,” said Pierre Pringuet, Chief Executive Officer of Pernod Ricard.
Pernod Ricard acquired small but fast-growing brands such as the gin Monkey 47 after sales of its flagship brand – vodka Absolut, in the United States, slowed in recent years.
Ricard, who is a third-generation member of the family, managing the company is trying to sell more Martell cognac Chivas Regal whiskey on the developing middle class in China. Demand for luxury cognac in the country fell after the government’s anti-corruption campaign that hit all producers of alcoholic beverages.