Pernod Ricard unveiled a €1bn share buyback, two new board members and two significant new investments in the US and China, its largest markets, as it seeks to fend off pressure from activist investor Elliott Management.
The announcements came on Thursday as the world’s second-biggest spirits maker reported annual revenue and operating profit growth in the year to June 30 that was in line with analyst expectations, according to consensus from FactSet.
Chief Executive Alexandre Ricard cast the mainland China investment of $150m over a decade as symbolic of the family-backed company’s culture of making long-term bets on growth. The goal is to turn the future Emeishan distillery in Sichuan province into a tourist destination, as well as production hub by 2021 for a new whisky brand to serve the local market.