REMYF - Pernod Ricard: Betting On Post-COVID Recovery In Emerging Markets
- We review the Pernod Ricard investment case after FY20 results on September 2; after COVID, the P/E has shrunk 17% vs. last August.
- FY20 H2 (January-June 2020) results showed the full impact of lockdowns, with sales down 25% and EBIT down 46% year-on-year.
- However, the long-term structural growth story remains unchanged; earnings growth has, in fact, been healthy up to H1 FY20.
- The company's higher Emerging Markets exposure may mean a slower recovery, but China and India should remain long-term growth engines.
- At €138.60, shares are expected to deliver an annualised return of 10.1% and a total return of 42% over the next 3.5 years. Reiterate Buy.
For further details see:
Pernod Ricard: Betting On Post-COVID Recovery In Emerging Markets