Buy signal on Pernod Ricard (RI-FR)
Pernod Ricard is a €38.6bn market cap, and the world leader in the production and marketing of Premium and Prestige wines and spirits. Revenue is split between 1/spirits and champagnes from strategic international brands (62%): Absolut, Jameson, Ballantine's, Havana Club, Ricard, Malibu, Chivas Regal, Beefeate, Martell, The Glenlivet, Royal Salute, Mumm and Perrier-Jouët; 2/spirits from strategic local brands (19%): Imperial Blue, Wyborowa Wodka, Kahlúa, Pastis 51, 100 Pipers, Olmeca, Clan Campbell, J.P. Wiser's, Ramazzotti, Royal Stag brands, etc. ; 3/strategic wines (5%): Jacob's Creek, Kenwood Vineyards, Brancott Estate and Campo Viejo brands; and 4/ artisanal spirits of specialty brands and other (14%).
The geographic breakdown of sales is as follows: Europe (30%), Americas (29%) and others (41%).
Pernod has been much impacted by the lockdown and restaurants, bar and hotels closure. A vaccine availability leading to the economy re-opening is a strong positive factor for Pernod.
Short term catalyst: Re-opening of restaurants & hotels.
This signal looks consistent with the current strong rebound on the beverage sector.