By Anthony Shevlin

Shares in Pernod Ricard SA (RI.FR) traded higher Thursday morning after it announced plans for a share buyback program and raised its dividend after its fiscal 2019 growth beat expectations.

The French premium-spirit maker's organic growth in profit from recurring operations was 8.7%. In April, the company said it targeted growth of around 8%, at the top end of its previously stated range of between 6% and 8%.

At 0826 GMT, shares in Pernod Ricard traded 4% higher at 173.35 euros ($193.08).

The company, whose brands include Chivas whisky and Absolut vodka, said net profit fell slightly to EUR1.46 billion from EUR1.58 billion.

Despite the fall in earnings, Pernod Ricard raised its dividend to EUR3.12 and disclosed plans for a share buyback program for a maximum amount of EUR1 billion.

The buyback program is due to be implemented over fiscal 2020 and fiscal 2021 and shares acquired via the program will be canceled.

Bryan Garnier analysts highlighted Pernod Ricard's strong return to shareholders and said the fiscal 2019 results hold a lot of positives, with sales in the fourth quarter being a positive highlight.

On the other hand, Citi analysts said Pernod Ricard's target of growth in organic operating profit of between 5% and 7% in fiscal 2020 dampens Thursday's solid results.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com; @anthony_shevlin

(END) Dow Jones Newswires

August 29, 2019 04:46 ET (08:46 GMT)

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