On March 24, the French firm predicted that it would suffer an organic profit decline of 20% for FY20. However, it has now amended that guidance to a decline of 15% after its brands fared better than expected.
It took a hit in India, where a six-week lockdown in India temporarily forced it to suspend all sales and production. Pernod Ricard produces huge brands such as Imperial Blue, Royal Stag and Blenders Pride, and they have suffered as a result of the trading conditions in India. At the start of the outbreak, Pernod Ricard pledged Rs 15 crore ($2 million) to boost healthcare facilities across India as it prepared to battle the coronavirus outbreak.
The company also noted that predictions of sharp declines in China and travel retail have proved correct thus far.
However, sales in the United States and Western Europe were a lot more resilient than expected. Pernod Ricard supplies the likes of Absolut, Jameson, Glenlivet, Chivas Regal, Ballantine’s, Royal Salute, Redbreast, Plymouth Gin, Beefeater, Monkey 47, Havana Club, Malibu, Martell, Mumm Champagne, Campo Viejo and Jacob’s Creek, among many others, and there has been a heightened off-trade demand for these brands.
It added that strong cost mitigation measures have helped the firm improve its outlook for FY20.
Earlier this week, Pernod Ricard announced it has invested in small-batch mescal brand Ojo de Tigre. Chief executive and chairman Alexandre Ricard said the firm was looking forward to “a successful collaboration towards the brand’s future development”.
