The factors in favour of a rise in the Pernod Ricard share price:
The first advantage of the Pernod-Ricard share is, of course, the very privileged positioning of this group in its sector of activity and internationally. Indeed, in the very specific field of wines and spirits, the group shares the leading position with the Diaego group, which gives it a certain stability in relation to its competitors and a strong reputation.
The Pernod-Ricard group is particularly well positioned in certain specific areas such as white spirits and rum with 38% of volumes, for which it is currently the world leader. Next come whiskies with 36% of volumes, for which it is number two in the world, and liqueurs with 20% of volumes, for which it is also number two in the world. It is also worth noting that the group ranks third in the world for cognacs and brandies, also third for bitters and is the international leader in the aniseed category.
Geographically speaking, the Pernod-Ricard group also shows a certain balance with activities well distributed between the European market, the American market (North and South America) and the Asian market with the rest of the world. It therefore has little exposure to local economic risks.
In recent years, the Pernod-Ricard group has implemented a new strategy based on upgrading its products.
Pernod-Ricard also benefits from a low level of dependence on household consumption.
The Pernod-Ricard group has always been able to impose its price level on its consumer customers because of its premium positioning and the low level of competition on some of its flagship products. As a result, investors benefit from good visibility in terms of increased profits and the group can guarantee the preservation of its margins in the future.
For some time now, Pernod-Ricard has of course benefited from the end of the US embargo on Cuba. The group, which is present in this country with its Havana Club brand, thus has the opportunity to target the US market, which is currently the third largest rum market in the world.
Finally, we also note of course the strength provided by the financial structure of Pernod-Ricard, which is particularly healthy. The cash flow generated by the group's activity very easily reaches one billion euros.