...Strong Business Profile: Pernod Ricard S.A.'s ratings reflect its number-two position in the global spirits industry, geographically diverse operations, and powerful brands in several major international consumption categories. This results in operating performance resilience, healthy profitability and the ability to generate healthy free cash flow (FCF) in the long term. Pernod's large exposure to emerging markets (financial year to June 2017 (FY16): 38% of sales) remains a major driver for long-term organic sales growth, while a combination of the pricing power of its higher-end exclusive products and its record of innovation supports revenues in the event of volume weaknesses. Resilient Profitability: Pernod has continued to demonstrate relative stability in its operating margins despite the recent weakening of some emerging markets, and FX headwinds. The resilience of group profitability stems from wide geographical diversification, pricing power and a strong brands portfolio, together...
