Pernod Ricard increases profit guidance to 16%

Pernod Ricard’s share price increased 2% this morning after the firm raised its profit growth estimate following “greater than expected business dynamism”.

The Absolut, Jameson and Chivas Regal producer had previously forecast profit growth of around 10% for the 12 months to June 30. It has now raised guidance to 16% after revealing that the pace of recovery is proving stronger than anticipated.

It means that FY21 will be broadly in line with FY19, the last full year of pre-pandemic trading, on an organic basis.

Pernod Ricard’s sales were up just 1.7% for the nine months to March 31, so much of the growth will come during the current quarter.

The market reacted positively to the announcement in early trading, pushing the firm’s share price to a new record high.