REMYF - Pernod Ricard: U.S. And China Led Sales Stabilization In Q3
- Pernod Ricard's sales stabilized significantly in Q3 2020, with year-on-year decline decelerating to 5.6%, from 36.2% the quarter before.
- Sales growth in the Americas turned positive, helped by the high mix of resilient "off premise" trade and partial re-openings in the U.S. market.
- China also showed positive sales growth, but sales were down double-digits year-on-year in India, and down 64% in Travel Retail.
- We continue to believe earnings will recover fully after COVID-19, and now expect earning to return to pre-COVID-19 FY19 levels by FY22.
- At €147.55, shares offer a total return of 38% (9.7% annualized, including an 1.8% Dividend Yield) in just over 3 years. Buy.
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Pernod Ricard: U.S. And China Led Sales Stabilization In Q3