PDRDF - Pernod Ricard: Q3 FY21 Rebound Shows Post-COVID Potential
- Pernod Ricard's Q3 FY21 results showed a strong rebound, demonstrating Spirits businesses' potential after COVID-19 and in the long term.
- Compared to a COVID-hit prior year, sales in China rebounded by triple digits, and exceeded 2019 levels in almost all channels.
- In Americas, sales grew by 5% organically from a prior year largely unaffected by COVID-19; Europe showed a partial rebound.
- EBIT was only 2.4% lower organically in H1 thanks to cost control, and is now expected to grow 10% organically year-on-year in FY21.
- At €175.30, shares are trading at 26x 2019 EPS. We expect a total return of 31% (9.0% annualized) in 3 years. Buy.
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Pernod Ricard: Q3 FY21 Rebound Shows Post-COVID Potential