Pernod-Ricard Stock: Shares Rise Despite Sales Decline

French spirits manufacturer Pernod Ricard reported a 4 percent organic sales decline to €6.18 billion in the first half of the current fiscal year. Despite this downturn, the company's stock demonstrated remarkable resilience, climbing more than 3 percent on the Paris stock exchange following the announcement. The market's positive response was largely attributed to the company's commitment to maintaining its margin targets, even as it revised its growth forecast downward. Looking ahead to fiscal year 2024/25, the group now anticipates a low single-digit decline in organic net sales, adjusting its previous expectation of returning to growth.

Regional Market Performance

The company's performance showed significant geographical variations in the first half. While Asia, particularly China, struggled with weak economic conditions and subdued consumer demand, India emerged as a bright spot with 6 percent growth. The Americas region experienced a 3.4 percent decline in the second quarter, with the U.S. market underperforming expectations. European operations demonstrated relative stability, although consumer pressure in Germany and Spain led to revenue losses. The company views the upcoming fiscal year as transitional, with plans to accelerate efficiency improvements from 2026 to 2029.

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Source StockWorld