French drinks firm Pernod Ricard raises 2021 profit forecast By Reuters

PARIS (Reuters) – Pernod Ricard (PA:PERP) said it now expected organic profit growth of about 16% for its 2020/2021 fiscal year, up from a previous April forecast of 10%, as the French drinks group saw a stronger than expected recovery as COVID-19 curbs are lifted.

The owner of Mumm champagne, Absolut vodka and Martell cognac had already told an investor presentation on Tuesday that it was confident about its prospects in Asia, helped by cognac and Scotch whisky demand in China.

And Pernod Ricard’s third-quarter results, published two months ago, had beaten analysts’ expectations.

“The pace of recovery is proving stronger than anticipated (…) Demand is accelerating as restrictions are progressively lifted,” the group said in a statement on Wednesday.

At Tuesday’s market close, Pernod’s share price was up 14.8% since the start of the year, versus +12.8% for the Stoxx 600 Food & Beverage index and +21.7% for world leader and main rival Diageo (LON:DGE).