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PERNOD REACTS TO DISAPPOINTING FIRST HALF

Pernod Ricard has earmarked key areas for cost savings and future growth after the drinks group was forced to reduce its earnings forecast for 2013/14.

18/02/2014

The company’s half-year results saw sales remain flat as an 18% decline in China and “highly unfavourable” euro exchange rate balanced a resurgence in mature markets and the rest of Asia. This overall performance led the group to revise its 2013/14 pre-tax earnings growth forecast from an earlier figure of 4-5% to just 1-3%.

As part of this reassessment, Pernod Ricard CEO Pierre Pringuet explained that the group had abandoned a previous prediction of a 2014 recovery for the Chinese market, whose sluggish performance has had a similarly negative effect on other major drinks groups. “The difficulties in China are to persist for the full financial year,” he warned.

See more at: http://www.thedrinksbusiness.com/2014/02/pernod-reacts-to-disappointing-first-half/ 

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