The maker of Absolut vodka isn't sugarcoating its coronavirus problem. The company cut its annual profit growth outlook as it said China’s coronavirus epidemic was likely to have a “severe” impact on its third-quarter performance.
Pernod Ricard, the maker of Jameson whiskey and Absolut vodka, cut its annual profit growth outlook for 2019-2020 on Thursday, as it said China’s coronavirus epidemic was likely to have a “severe” impact on its third-quarter performance.
“In our view Pernod Ricard deserves credit for attempting to quantify the impact, which few other companies we follow have done,” said James Edwardes Jones, analyst at RBC Capital Markets. In its winter 2019 economic forecast, the European Commission said: “The longer it lasts, however, the higher the likelihood of knock-on effects on economic sentiment and global financing conditions.”
Pernod, the world’s second-biggest spirits group after the U.K.’s Diageo DGE, -0.87%, said operating profit from recurring operations would grow between 2% to 4% this year, down from the 5% to 7% it previously predicted, because of the impact of the coronavirus outbreak.
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