Credit Suisse expects Q2 and full-year organic sales growth of +9.2% and +10.1% (against a Visible Alpha consensus of +7.5/+9.1%), underpinned by solid pricing, resilient trends in Europe and the reopening of certain Asian regions, offsetting disappointing trends in the US and China.
In the Americas (CSe +6.4% organic sales in Q2), Credit Suisse expects +5% growth in the US. In Asia and the rest of the world (CSe Q2 +13.7%), the analyst is targeting single-digit growth in China. ' However, this is offset by continued strong growth in India, Africa/Middle East ' stresses the analyst firm.
Credit Suisse recently upgraded its opinion on the stock to outperform with a price target of 230 E.
' Our organic sales and EBIT growth of +8.9% and 9.4% for fiscal 2023 is unchanged, and compares with consensus +7.4%/+7.5%. We are not making any significant changes to estimates; our EPS is +4% versus consensus', says Credit Suisse.
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Pernod Ricard is the world's No. 2 in the production and marketing of Premium and Prestige spirits and wines. Net sales break down by family of products as follows:
- spirits and champagnes of strategic international brands (63.4%): Absolut (12.7 million cases sold in 2022/23), Jameson (10.7 million), Ballantine's (8.8 million), Chivas Regal (5.1 million), Malibu (4.7 million), Ricard (4.4 million), Havana Club (4.3 million), Beefeater (3.7 million), Martell (2.4 million), The Glenlivet (1.6 million), Mumm (0.6 million), Royal Salute (0.3 million) and Perrier-Jouët (0.3 million);
- local strategic brands' spirits (17.7%): Seagram's, Kahlua, Olmeca, Seagram's Gin, Ramazzotti, Imperial, Pastis 51 and Clan Campbell brands, etc.;
- speciality brand's craft spirits (6.2%): Italicus, Lillet, Pernod, Suze, Augier, Malfy, Jefferson's, Powers and Redbreast brands, etc.;
- strategic wines (3.9%): Jacob's Creek, Kenwood, Brancott Estate, Campo Viejo, Church Road, George, St Hugo, Stoneleigh, Ysios and Wyndham brands;
- other (8.8%).
At the end of June 2023, the group has 96 production sites worldwide.
Net sales are distributed geographically as follows: Europe (28.5%), Americas (28.7%) and other (42.8%).