PRNDY Stock Recent News

I give a hold rating for Pernod Ricard due to headwinds in the US and China, margin pressures, and potential tariff risks. Pernod Ricard is losing market share in the US and facing weak consumer sentiment and regulatory challenges in China, impacting sales and profitability. Despite cost-cutting efforts, Pernod Ricard's margins are compressing, and potential US tariffs on European spirits could further exacerbate this issue.

Pernod Ricard is exploring a sale of its champagne brand G.H. Mumm, according to five sources familiar with the matter, as it looks to focus on premium labels in its portfolio.

Jonny Forsyth, senior director of food & drink at Mintel, weighs in on Diageo's earnings and the potential impact of U.S. tariffs on the drinks industry.

India's antitrust watchdog has sought additional information and documents from Delhi city authorities as it steps up an investigation into allegations of competition law violations by France's Pernod Ricard , a government document shows.

Pierre-Yves Calloc'h, chief digital officer at Pernod Ricard, comments on how artificial intelligence is transforming the French firm.

Pernod Ricard, trading at a 10-year low forward PE of ~14X, offers a 4.5% dividend yield and future growth potential. Despite recent sales declines, Pernod's diversified portfolio and growth in emerging markets like India and Brazil present strong future growth opportunities. Pernod's ability to generate €1.3 billion in free cash flow and a 17% pre-tax return on tangible capital supports its growth and shareholder returns.

An internal investigation ordered by Pernod Ricard concluded that top executives at its India business violated the law by colluding with alcohol retailers in New Delhi, according to a document seen by Reuters, even as the French giant's representatives denied wrongdoing in court and publicly.

Pernod Ricard's recent price drop offers a long-term buying opportunity in a historically stable and profitable industry, now trading at 15.7x earnings. Despite short-term challenges, PRNDY's strong brand portfolio and presence in key markets like India and China provide optimism for future growth. The company's elevated debt and potential dividend cut could lead to short-term volatility, but reallocating capital to buybacks and debt repayment could be beneficial long term.

Pernod Ricard faces significant challenges with an 8.5% sales decline, particularly in China and the U.S., due to tariffs and economic issues. PRNDY appears undervalued with a P/E ratio below its 5-year average, suggesting a potential 29% upside. Competitors like Brown-Forman offer better profitability and resilience, making them more attractive investments in the current macroeconomic climate.

Pernod Ricard SA (OTCPK:PDRDF) Q1 2025 Earnings Conference Call October 17, 2024 3:00 AM ET Company Participants Hélène de Tissot - EVP, Finance Florence Tresarrieu - Investor Relations Conference Call Participants Andrea Pistacchi - Bank of America Olivier Nicolai - Goldman Sachs Sanjeet Aujla - UBS Edward Mundy - Jefferies Mitch Collett - Deutsche Bank Gen Cross - BNP Paribas Simon Hales - Citi Florence Tresarrieu Good morning everyone. We are very pleased to welcome you today to our Q1 FY'25 Sales Call.