Focus on development and debt relief for Pernod Ricard

Pernod Ricard, which on Thursday reported an operating profit up 4% for 2009-2010, priority is given to the current year to develop its core brands and reducing debt.

The world's second largest wine and spirits, which traditionally provided its outlook for the new year at the meeting of its shareholders in the fall, only indicates in a statement, will focus on "development of its strategic brands Premium The pursuit of a level of sustained marketing investment and debt relief group. "

Pernod Ricard has seen its operating profit reached 1.795 million euros for the year ended June, on a turnover of organic growth of 2% to 7.081 million euros (down 2% as reported).

The progression of this result, excluding currency and perimeter, fits into the top end of the forecast of the group (3% and 4%) made at the end of July release of its turnover Annual.

Its rival Diageo, the world leader in the industry, has made little progress on its prospects, content to rely on an increase in operating profit "superior" to 2% of the previous year.

Net debt stood at Pernod 10.5 billion euros, down from 304 million (taking into account the rate of the euro / dollar) and 1.09 billion excluding currency translation.

Net debt / EBITDA spring down to 4.9 at June 30, 2010, against 5.4 a year earlier.

The owner of Ricard aniseed, Absolut Vodka, the Martell cognac, Chivas Regal whiskey or champagne Mumm saw its operating margin to moderate to 25.4% against 25.6% a year earlier.

The net income group share stood at 1.001 million euros, down 1% and up 7% at constant exchange rates.

The group will propose to its shareholders a dividend of 1.34 euro per share, sharply up from 0.50 last year.

The title was down in early trading on the Paris Bourse, announced the results appear without surprise. The work yielded 1.15% to 62.020 euros to 09.30, while the CAC 40 index lost 0.6%.

During Wednesday's closing price, the value signed up 4.7% since January.It deals with valuation multiples of about 17.7 times earnings estimates for the coming year, against nearly 15 Diageo.

At this level, the title is generally considered properly valued by analysts, many of them prefer Pernod Ricard face British rival for its greater exposure to fast-growing Asian markets.

China is now the third largest market for Pernod Ricard, behind the United States and France.