At the end of the day, Pernod Ricard's share price was down by almost 1.2%, penalized by Deutsche Bank's analysis.
Deutsche Bank announced on Thursday that it had lowered its target price for Pernod Ricard from €140 to €135, ahead of the publication of the spirits group's 3rd quarter sales on April 25.
The analyst - who has a "hold" recommendation on the stock - says he expects organic growth of 2.7%, hampered by difficulties in the USA, China and Russia.
While he expects Pernod to confirm its target of stable sales overall, excluding currency and scope effects, for the full year, the intermediary warns that the prospect of growth of between 0% and 5% in operating profit from ordinary activities (OIR) seems more at risk in view of the deterioration in the group's main markets.
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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%).