Pernod Ricard reported better-than-expected results for its 2022/23 financial year on Thursday, but said it expected a "more modest start to the first quarter" with lower sales in America and China.

The Group expects a decline in China due to a difficult macroeconomic environment. In the Americas region, it points to a high basis of comparison, despite a positive outlook for the year as a whole.

These forecasts are weighing on Pernod Ricard's share price, which was down 3.89% at 186.75 euros at 08:21 GMT.

"Although the environment remains difficult for the 2023/24 financial year, I remain confident in Pernod Ricard's ability to achieve its medium-term objectives", commented Chairman and CEO Alexandre Ricard in a press release.

The owner of Martell cognac, Mumm champagne and Absolut vodka reiterated its medium-term outlook, namely sales growth at the upper end of a range of between +4% and +7%.

The Group also announced a share buyback program of between 500 and 800 million euros for the 2023/24 financial year. This program is in line with expectations, write Credit Suisse analysts in a note.

Over the 12 months to June 30, operating income before non-recurring items (OI) totaled 3.35 billion euros, representing organic growth of 11%, ahead of the company's own forecasts of a 10% increase.

Sales for the French wine and spirits group came to 12.14 billion euros, representing organic growth of 10%, thanks to growth in all regions. Analysts were expecting organic sales growth of 9.3%, according to a consensus compiled by Pernod Ricard and shared by JPMorgan.

In Asia and the rest of the world, sales growth amounted to 17%, driven by India, a rebound in Travel Retail, China and Turkey. In the Americas, growth was 2%, and in Europe 8%. (Written by Kate Entringer)