REMYY - Pernod Ricard Not Exactly Cheap But Multiple Growth Drivers Are Attractive
- Pernod Ricard is likely to still report a double-digit decline in organic sales for the fiscal first quarter, but its markets are starting to recover.
- While consumption of Western-style spirits is still uncommon in markets like China and India, Pernod Ricard has established early market leadership by catering to local tastes.
- Pernod Ricard has a demonstrated capability of driving premiumization of its portfolio and product line extensions of leading brands to maximize their value.
- Mid-single-digit revenue growth coupled with meaningful margin expansion can drive double-digit long-term FCF growth and support a decent return from here.
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Pernod Ricard Not Exactly Cheap, But Multiple Growth Drivers Are Attractive