Pernod Ricard Warns Strong Euro Will Erode Full-Year Profit
- Distiller warns strong euro may reduce profit by EU125 million
- Pernod’s full-year operating income rose to EU2.39 billion
Bottles of Jameson whiskey, produced by Irish Distillers Ltd., are seen as they pass along the production line at the Pernod-Ricard SA bottling plant in Dublin, Ireland, on Monday, Jan. 23, 2012. Pernod-Ricard SA sold $2.5 billion of debt, its second sale in three months, as the maker of Chivas Regal whisky takes advantage of the investment-grade ratings gained last year from the two biggest credit graders. Photograph: Aidan Crawley/Bloomberg
Photographer: Aidan Crawley/BloombergPernod Ricard SA, the world’s second-largest distiller, warned the strong euro will erode full-year earnings as it means revenue from selling Absolut vodka and Jameson whiskey in the U.S. will be worth less when converted from dollars.
Currency movements are expected to trim profit by about 125 million euros ($148 million), the Paris-based company said Thursday. The stock fell as much as 4.2 percent in early Paris trading, the steepest intraday decline in almost a year.