French spirits group Pernod Ricard has today warned of a hit of around 20% to its current operating profit as a result of the slump in business caused by the global coronavirus crisis.
Pernod, which owns Irish Distillers here, is the biggest international spirits maker in China and the world's second-biggest behind Diageo.
It had already cut its outlook for full-year profit growth February as a result of the hit to business from the virus.
Pernod added it was in a solid financial position to be able to cope with the impact of the outbreak, and that it had €3.4 billion available in credit lines.
"The environment has very significantly deteriorated due to the COVID-19 outbreak. We are encouraged to see that, thanks to the implementation of strong measures, China appears to be starting to make a gradual recovery," said Alexandre Ricard, Chairman and chief executive of Pernod.
"While we cannot predict the duration and extent of the impact, we remain confident in our strategy," he added.
