(Adds dropped percentage sign in first bullet.)
** Shares in spirits maker Pernod seen rising 2-3% on
better-than-expected Q1 sales and confident H2 outlook
** Pernod, the world's second-biggest spirits group behind
Diageo, expects H2 sales to return to growth, having
posted a better-than-feared Q1 sales organic decline of 5.6% to
EUR 2.24 bln ($2.65 bln)
** Polls had expected a decline of 13.1% in Q1
** Shares are "arguably past the point of peak pessimism",
Jefferies says, expecting a positive stock reaction, supported
by Pernod weathering volatility well
** The beat is broad-based in the Americas and in Europe,
helped by resilience in the off-trade (sales to food retailers)
and partial on-trade re-opening benefits (sales to hotels, bars
and restaurants), JP Morgan says
** It expects mid single digit FY consensus upgrades, "given
the strong momentum and clearly depressed expectations"
** The brokerage sees a positive read-across for Campari
and Diageo
($1 = 0.8438 euros)
Diageo (DGE)
