By Matteo Castia

Pernod Ricard SA said Thursday that it expects a less pronounced organic decline in annual profit from recurring operations than previously thought thanks to strong cost mitigation.

The French spirits make said it now forecasts a 15% organic fall in profit from recurring operations for 2020, a better figure than the 20% drop initially estimated in its release on March 24, when it first shared its evaluation of how the coronavirus pandemic would hit its business.

At that time, Pernod Ricard also projected a 10% sales reduction in the off-trade--or retail-outlet--market, and an 80% fall in travel retail.

"There have however been some notable differences [from the previous forecasts], mainly with India being subject to a full six-week lockdown of all sales and production, but more resilience in the off-trade [market], especially in the U.S. and Western Europe," the company said Thursday.

Write to Matteo Castia at matteo.castia@dowjones.com