Pernod Ricard Not Looking For Large Acquisitions At Present
06 Settembre 2011 - 7:02PM
Dow Jones News
Pernod Ricard SA (RI.FR) isn't looking at making large
acquisitions at present, the company's finance director said
Tuesday.
The maker of Martell cognac, Havana Club rum and Mumm champagne
is concentrating on further paying down debt, Gilles Bogaert told
reporters at a briefing. The company's net debt stands at just over
EUR9 billion.
He said the company is targeting a net debt to earnings before
interest, taxes, depreciation and amortization ratio of close to 4
times by the end of June next year, down from 4.4 times at the end
of its last fiscal year.
"Our priority is deleveraging," Bogaert said. "Massive
acquisitions short term are not on the agenda, but we are open to
tactical moves."
Pernod Ricard, which also produces Absolut vodka, Chivas Regal
whisky and Malibu rum, has been linked to making a consolidation
play for spirits assets owned by U.S.-based conglomerate Fortune
Brands Inc. (FO), which includes Jim Beam bourbon. Fortune Brands
is looking to spin off its home and security business next
month.
Last week, Pernod Ricard said it was confident about its growth
prospects after it posted a 10% increase in net profit for the year
ended June 30, 2011, boosted by a focus on flagship brands.
The earnings uplift followed a solid performance last week from
U.K.-based peer Diageo PLC (DGE.LN), producer of Johnnie Walker
scotch, Guinness stout and Smirnoff vodka, which set ambitious
targets for double-digit earnings growth in the medium term after
recording a 17% rise in net income.
European spirit giants are benefiting from a global thirst for
premium products, increased consumer confidence among the well-off
in developed economies, robust exposure to emerging markets growth
and reduced dependency on weather patterns, helping them boost
earnings and sales.
-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410;
simon.zekaria@dowjones.com
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