French drinks group, Pernod Ricard, has announced its intention to repurchase up to EUR800 million ($874 million) worth of shares in fiscal 2024. The decision comes after the company reported a significant increase in sales and profit for fiscal 2023.
Over the year ending June 30, Pernod Ricard achieved organic sales growth of 13% on a reported basis, reaching EUR12.14 billion. Net profit also saw a notable rise, reaching EUR2.28 billion compared to EUR2.03 billion in fiscal 2022.
According to a poll conducted by FactSet, analysts had predicted sales of EUR12.16 billion and net profit of EUR2.4 billion.
In the fourth quarter alone, sales rose from EUR2.30 billion to EUR2.63 billion year-on-year.
Pernod Ricard attributes its success to price increases across all regions, with strong growth witnessed in all spirits categories.
Looking ahead, the company remains optimistic as it reaffirms its medium-term financial targets for fiscal years 2023-2025. This includes aiming for a net sales growth of between 4% and 7%, with an increase in operating margin between 50 and 60 basis points.
Additionally, Pernod Ricard has proposed a dividend of EUR4.70, representing a 14% increase from the previous fiscal year (2022).