RI Pernod Ricard

By Andrea Figueras

Shares in Pernod Ricard climbed on Thursday after the French drinks company confirmed its growth targets for the upcoming year despite a decline in sales in the first quarter.

At 0831 GMT shares traded 4.7% higher at EUR166.10.

The group posted sales of 3.04 billion euros ($3.20 billion) for the first quarter of fiscal 2024 ended in September, down 8% on the year in reported terms and 2% organically, on the back of expected declines in the Americas and China.

While first-quarter results came in-line with expectations, the company remains confident that sales momentum will improve through fiscal 2024 with positive organic sales growth in both the U.S. and China, Citi analysts said in a research note.

"We expect little change to consensus estimates today and that investor focus will be on management comments on Mid-Autumn Festival off-take trends and wholesaler stock levels in China and whether U.S. inventory adjustments are complete," Citi added.

Incremental colour around a positive outlook in the U.S. and China and strong growth in travel retail and India should be well-received, as it implies U.S. and China accelerating to at least 3% for the remainder of the fiscal year, Jefferies analysts Edward Mundy and Andrei Andon-Ionita said in a research note.

"This should be enough for gentle outperformance today," Jefferies said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

October 19, 2023 05:31 ET (09:31 GMT)

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