|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||131.75 - 131.75|
|52 Week Range||126.00 - 196.10|
|Beta (5Y Monthly)||0.52|
|PE Ratio (TTM)||19.04|
|Forward Dividend & Yield||3.46 (2.53%)|
|Ex-Dividend Date||Nov 24, 2019|
|1y Target Est||N/A|
(Bloomberg) -- Amid all the economic despair in the age of coronavirus, there is still something about the promise of sky-high returns that the American investor finds irresistible.Cruise line operator Carnival Corp. proved that Wednesday when investors clamored to buy a new $4 billion bond sale that pays interest of 11.5%, one of the highest coupons ever offered, particularly by an investment-grade rated company. Demand was so frenzied -- as high as around $17 billion -- that Carnival was able to cut the coupon and increase the original size of the offering by an extra $1 billion, according to people familiar with the situation.Even with the economy spinning down, corporations around the globe have been able to tap the bond market to raise record amounts from investors in recent weeks. While executives are looking to stay liquid, investors’ confidence was buoyed by the trillions of dollars the Federal Reserve and other central banks are spending to buttress their economies.The demand for Carnival’s bonds was especially notable because investors have largely shunned riskier firms. Its business has been ravaged by the virus and investors still can’t be sure when the company will sail again. Appropriately enough, the majority of orders for Carnival’s offering are from junk-bond accounts.Yields that approach Carnival’s heights are usually seen only on the riskiest types of junk bonds, such as those issued from holding companies that are further removed from real assets or those that give borrowers the option to delay cash interest payments.A flurry of other bond deals Wednesday continued a strong performance for much of March, with 11 new investment-grade dollar deals, and T-Mobile US Inc. is marketing a potential $10 billion offering for its acquisition of Sprint Corp. Europe had 17 new deals, its busiest day since January, including Tiffany buyer LVMH and Absolut Vodka maker Pernod Ricard SA.Overall in March, U.S. investment-grade issuance topped $259 billion for a new monthly record, while European supply passed 135 billion euros ($148 billion), the most since 2016. Asia’s dollar market was quiet for most of the month, though Chinese internet search giant Baidu Inc. announced a deal to start April.Still, returns were dismal. Even with the Fed’s help fueling a late stage rally, March was still the worst month for returns since the end of 2008, with U.S. high-yield down 11.5% and investment grade dropping 7.1%. The European index lost 6.9% in March, its biggest loss ever. Spreads on top-rated Asian dollar bonds ended the first quarter 146 basis points wider, the worst blowout since 2009.“We expect issuance to continue as corporates look to bolster liquidity,” said Henrik Johnsson, co-head of capital markets at Deutsche Bank AG. “The long term effect of all this debt is hard to quantify.”U.S.Credit markets weakened with stocks on Wednesday as President Donald Trump told the U.S. to brace for one of its toughest stretches as a nation, with the death toll from the virus projected to potentially top 200,000. The high-grade borrowing bonanza showed no signs of abating with 11 companies launching $28.5 billion in new debt, meaning 36 issuers have already priced $78.8 billion this weekT-Mobile has hired banks to market its secured bond offering to investors, which may come Thursday in dollars and/or euros with maturities ranging from five to 40 yearsCarnival wrapped up its $4 billion bond sale after boosting the dollar component, dropping the euro tranche and getting a two-notch downgrade from Moody’s Investors Service on TuesdayAB InBev is testing investor demand with a four-part offering of maturities due between 10 and 40 years, capitalizing on interest lately in the long end. It sold 4.5 billion euros of bonds Monday, and may need to cut its dividend to preserve ratingsFor deal updates, click here for the New Issue MonitorOil producer Whiting Petroleum filed for bankruptcy, the first big casualty of a global collapse in crude prices that’s leaving debt-laden shale explorers struggling to surviveEuropeSeventeen deals priced Wednesday in the primary market’s busiest day for more than two months, totaling 26.8 billion euros. It follows the best-ever quarter for debt sales, with more than 510 billion euros priced, mainly reflecting huge volumes at the start of the year, and lots of reverse Yankee issuance.Borrowers including LVMH Moet Hennessy Louis Vuitton SE and Absolut Vodka maker Pernod Ricard SA are leading a calendar set to price 26.57 billion eurosInvestors have thrown almost 100 billion euros worth of cash at today’s deals, according to data compiled by Bloomberg, led by demand for offerings from Portugal, Total Capital International SA, a euro green note offered by Spain’s Iberdrola Finanzas SA, LVMH and Pernod RicardSpreads on euro IG company bonds remain elevated but have fallen about 8 basis points from multi-year highs reached on March 24, according to a Bloomberg Barclays indexSpanish bankers and lawyers are bracing for a steep surge in insolvencies, amid the country’s rising death toll and strict lockdown measures. Prime Minister Pedro Sanchez has announced 117 billion euros of fiscal stimulus, but some business leaders say aspects of the government’s response risk making things worseEuropean banks may get more time to meet loss-absorbing debt targets, the euro-area’s Single Resolution Board said. It’s ready to adapt transition periods and interim targets to help them deal with the coronavirus falloutAsiaThe rebound in global bond sales in recent weeks has so far eluded Asia. After record issuance in January, sales of dollar securities by the region’s issuers, including financials and sovereigns, sputtered in the first quarter, totaling about $86 billion, up only about 3% on the year-earlier periodOne reason for that is that unprecedented stimulus from the Federal Reserve and European Central Bank has had more direct benefits in the U.S. and European marketsAnother factor is that Asian companies have been able to tap local-currency markets. Chinese companies sold a record amount of domestic bonds in March, for example, after Beijing flooded markets with cashBut there have been signs in recent days that more borrowers may offer dollar debt. Chinese tech giant Baidu Inc. was marketing an offering WednesdaySpreads on top-rated Asian dollar bonds were 10-20 basis points wider Wednesday, according to traders. They ended the first quarter 146 basis points wider, the worst blow-out in a Bloomberg Barclays index going back to 2009For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service, ("Moody's") has today affirmed the Baa1 long-term issuer and senior unsecured ratings of Pernod Ricard S.A. (Pernod), the world's second-largest spirits and wine producer in terms of sales. Concurrently, Moody's has affirmed the Prime-2 (P-2) short-term ratings of both Pernod and its guaranteed subsidiary, Pernod Ricard Finance S.A. The outlook on Pernod is stable. The profit warning follows a re-assessment of the corona virus impact on Pernod's operations, and mainly reflects the following assumptions: (1) very limited business activity in China in February and March, with a gradual recovery from April; (2) 80% decline in travel retail for February-June period; (3) no sales from on-trade and 10% sales reduction from off-trade in the other markets from mid-March till June.
The world’s biggest distillers are racing to make hand gel, which has become increasingly rare in many countries due to a massive surge in demand.
Chemicals giant Ineos will build a hand sanitizer factory in the U.K. within 10 days, producing one million bottles a month to help fight a European shortage.
European stocks rose on Tuesday amid tentative signs that the coronavirus spread is slowing in Italy, one of the worst-hit countries, as negotiations continued on a U.S. stimulus package.
(Bloomberg) -- Anheuser-Busch InBev NV withdrew its earnings outlook for 2020 and Pernod Ricard SA forecast a 20% drop in profit as the coronavirus pandemic eliminates most of the revenue that drinks makers get from bars and restaurants.AB InBev abandoned its target that earnings growth could reach 5%, the world’s largest brewer said Tuesday. Pernod now expects the steepest earnings decline in years.Businesses big and small have been hit by the outbreak, which has upended lives and social norms across the globe. Many countries have ordered bars and restaurants to shut to try to slow the spread of Covid-19 as the disease has reached almost every country. Companies from plane maker Airbus SE to retailer Macy’s Inc. have withdrawn earnings forecasts and suspended dividends.Pernod said it gets a quarter of its revenue from bars and restaurants, and it’s forecasting that business will be absent from mid-March through June. The company expects a slow recovery in China starting next month, and sales from duty-free and shops in travel locations will drop 80% in the five months through June.AB InBev also pushed back the closing date for the $11 billion sale of its Australian operation Carlton & United Breweries to Japan’s Asahi Group Holdings Ltd. because it remains under review by Australian competition regulators. The deal is now expected to close in the second quarter, the beermaker said.Shares of AB InBev rose as much as 4.1%, having lost almost half their value this year. Pernod, which has dropped about 20% since December, gained 2.9%.The bleaker outlooks show that the industry isn’t banking on an uplift from any alcohol hoarding.Last month, AB InBev predicted its worst quarter in a decade as it factored in the impact from China’s lockdown at the beginning of the year, and Chief Executive Officer Carlos Brito’s annual bonus was cut. Now, as China slowly recovers, the virus is wreaking havoc on the rest of the world. The U.K. ordered pubs to shut last week, and Hong Kong on Monday banned restaurants and bars from serving alcohol.The brewer is starting to produce hand sanitizer and disinfectants as part of virus relief efforts.(Updates with shares in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Regulatory News: Trading Statement - Paris, 24 March 2020
The U.S.-listed shares of Pernod Ricard S.A. rose 2% in morning trading, to buck the sharp selloff in the broader stock market, after the France-based spirits and wine company said its U.S. subsidiary will "produce and donate" hand sanitizers to help fight the spread of the COVID-19 virus. The hand sanitizers will be produced at the U.S. manufacturing sites, including those in Fort Smith, Arkansas, Lewisburg, West Virgina, Louisville, Kentucky and Fort Worth, Texas. The company said Assistant to the President for Trade and Manufacturing Peter Navarro helped it navigate regulatory hurdles and obtain necessary approvals to produce the hand sanitizers in the U.S. Pernod Ricard said it will work with the U.S. government on plans for distributing the hand sanitizers. The stock has lost 25% over the past month, while the S&P 500 has declined 30%.
Today, premium wine & spirits leader Pernod Ricard USA answered the Trump Administration's call to action announcing that it will produce and donate hand sanitizer to help in the national fight against the COVID-19 virus.
International companies set out contingency plans and warn about the impact of the novel coronavirus as one of the world’s leading autoshows is canceled
Pernod Ricard, the maker of Jameson whiskey and Absolut vodka, cut its annual profit growth outlook for 2019-2020 on Thursday, as it said China’s coronavirus epidemic was likely to have a “severe” impact on its third-quarter performance. The French spirits maker, which generates 10% of its global sales in China, said it couldn't predict the “duration and extent of the impact,” but stressed it remained confident on overall strategy. “In our view Pernod Ricard deserves credit for attempting to quantify the impact, which few other companies we follow have done,” said James Edwardes Jones, analyst at RBC Capital Markets.
The rally in U.S. equities took a pause and the strong dollar got stronger on Thursday, rising to a three-year high against a basket of trading partner currencies, after a steep slide in the Japanese yen called into question its safe-haven status. Gold prices hit their highest in seven years as investors sought safe-haven assets after a rise in the number of new coronavirus cases in South Korea. Oil prices rose, supported by China's efforts to bolster its virus-weakened economy.
French spirits maker Pernod Ricard remains confident over its medium term-prospects in China despite the coronavirus epidemic which will hit its full year sales, its chief executive told Reuters on Thursday. Alexandre Ricard also said in a phone interview that his assumption was that consumer demand for spirits in China would return to normal from June. Pernod Ricard has a medium-term ambition to grow sales at a high single digit to low double digit rate in China.
French spirits group Pernod Ricard cut its full-year profit growth outlook for 2019-2020 on Thursday, saying the coronavirus epidemic in China was likely to have a severe impact on its third-quarter performance. The company, which makes 10% of its sales in China, said it could not currently predict the duration and impact of the crisis, but added it nevertheless remained confident on its overall corporate strategy. Pernod, the world's second-biggest spirits group behind Diageo, is now targeting an organic rise of between 2% and 4% in profit from recurring operations for the year to June 30, 2019.
The world's largest brewer AB InBev has scrapped its 2020 outlook as the scale of the coronavirus crisis has increased. The Belgium-based maker of Budweiser, Stella Artois and Corona had forecast at the end of February that core profit would fall by 10% in the first quarter. At the time, the coronavirus crisis was largely confined to China. But as the scale of COVID-19 has increased, so too have the restrictions imposed on many customers, including social distancing measures in scores of countries and the closure of bars and restaurants. It's not the only drinks group under pressure. French spirits maker Pernod Ricard also warned on Tuesday of a hit of around 20% to its current operating profit. Pernod is the biggest international spirits maker in China, and the world's second-biggest behind Diageo. It had already cut its full-year outlook, but says it is in a solid financial position to be able to cope with the impact of the outbreak - with 3.7 billion dollars available in credit lines.