Pernod Ricard Warns of Shrinking Profitability
PARIS (AP) — French drinks maker Pernod Ricard warned that profitability will shrink this year as it reported a drop in first half earnings and sales.
The maker of Absolut vodka and Chivas Regal whisky forecasted that core earnings growth would slow to between 1 and 3 percent this year, down from 6 percent a year earlier and 2 percent in the six months to Dec. 31.
Pernod Ricard reported net profit for the July-December period, its fiscal first half, of 839 million euros ($1.1 billion), down 2 percent from 857 million euros a year earlier. Sales slid 7 percent to 4.57 billion euros.
The company blamed the decline on a steep drop in sales in China, where first half revenue fell 18 percent, largely due to lower sales of Martell cognac.