Pernod Ricard: Oddo expects strong growth in Q1

(CercleFinance.com) - Oddo still prefers the French stocks Pernod Ricard and Rémy Cointreau, which are also the two main world producers of cognac (respectively Martell and Rémy Martin) alongside LVMH (Hennessy) and Suntory (Courvoisier).


Oddo says that Pernod Ricard's Q1 2018-19 is expected to see very strong growth. In addition to the group's underlying business, which remains very robust - particularly in China - the period will benefit from a very low comparison basis in India (beginning of the previous year disrupted by the GST and Highway ban) and the early date of the Mid-Autumn Festival (24 September 2018 instead of 4 October 2017).

The broker therefore expects particularly strong organic sales growth for the group (+6.0%), despite the high comparison basis (+5.7% LFL in Q1 2017-18). Indeed, Asia will be the main growth driver (+10% LFL estimated).



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