French spirits group Pernod Ricard said it is "continuously exploring options" for its business portfolio, after an Australian media report that it had mandated two banks to conduct a strategic review of its Australia and New Zealand wine business.
The Australian Financial Review reported that Pernod Ricard has mandated long-time advisers Morgan Stanley and JPMorgan with the review, which could lead to a sale process as early as next month.
The company’s Australian portfolio includes the Jacob’s Creek brand, along with St Hugo and George Wyndham. It also owns Brancott Estate and Stoneleigh in New Zealand, the paper said.
'Pernod Ricard regularly assesses and evaluates its strategic opportunities and is continuously exploring options, including divestments or the streamlining of some or part of individual business units,' Pernod Ricard said in an e-mailed statement.
'This is a usual process in line with management’s mission of delivering value to shareholders, employees, clients and stakeholders. Pernod Ricard nonetheless highlights that, at this stage, no decision has been made regarding any particular action,' it added.
Annual Performance
The spirits giant posted a higher-than-expected 11% organic rise in full-year 2022/23 operating profit amid strong sales.
Its performance was led by a recovery in demand for its Martell cognac in the fourth quarter in China, where it was able to raise prices.
Over the twelve months to 30 June 2023, the firm's profit from recurring operations reached €3.348 billion, an organic rise of 11%, beating analysts' expectations of a 9.6% rise and company's guidance for around 10%.
Sales reached €12.137 billion, an organic rise of 10%, with sales in the fourth quarter alone climbing 19%.
