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Pernod Ricard ups 2021 profit forecast

Jameson owner Pernod Ricard has raised its profit prediction for fiscal 2021 to 16% due to the acceleration of the on-trade.

Pernod Ricard
Jameson Irish whiskey is owned by Pernod Ricard

The French firm, producer of brands such as Absolut vodka and Havana Club rum, previously predicted an organic profit growth of 10% for the full year.

The company expects 2021 to be in line with fiscal 2019, despite restrictions in the on-trade and travel retail.

In April, Pernod Ricard reported its organic sales returned to growth in the first nine months of fiscal 2021, driven by a double-digit increase in the third quarter.

In a new update today (23 June), Pernod Ricard has raised its profit prediction due to ‘sales acceleration’ brought about by the gradual reopening of the on-trade.

However, the firm said the travel retail channel remains ‘very subdued’. For the first nine months of fiscal 2021, Pernod’s global travel retail sales plummeted by 50%.

The firm said the pace of recovery is ‘stronger than anticipated’ with a ‘resilient’ performance from the off-trade and ‘accelerated’ demand from the on-trade.

Pernod Ricard also expects its advertising and promotion spend to increase by 16% for fiscal 2021. The company said it would make ‘strong reinvestment to capture current and future growth opportunities’.

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