Irish Distillers owner Pernod Ricard said today it was suspending its remaining share buy back of up to €500m and tightly managing costs in response to the coronavirus epidemic that has slashed third quarter sales by 14.5%.
Pernod Ricard counts Jameson Irish whiskey, Mumm champagne, Absolut vodka and Martell cognac among its brands.
It reiterated its revised March guidance of an organic decline of around 20% in full year current operating profit as a result of the slump in business sparked by the crisis.
"We are staying the strategic course while implementing a comprehensive action plan to mitigate costs and tightly manage cash," chief executive Alexandre Ricard said in a statement.
"Thanks to our solid fundamentals and strong liquidity position, I am confident in Pernod Ricard's ability to bounce back from today’s challenges to achieve its growth potential," he added.
The French spirits maker reported sales of €1.736 billion in the three months to March 31, a 14.5% fall on a like-for-like basis.
Over nine months, sales declined 2.1%, reflecting a 13% fall in global travel retail and an 11% fall in China sales.
The biggest international spirits maker in China and the world's second-biggest behind Diageo, had warned in February it expected the coronavirus outbreak that shut bars and clubs in China to have a severe impact on its third quarter sales.
In March, it updated its guidance, warning of a hit of around 20% to full year current operating profit as a result of the slump in business as the coronavirus crisis went global.
