Pernod Ricard SA

Latest Results (31.08.2026):

Pernod Ricard SA — Q3 FY26: The Group reported Q3 FY26 Net Sales of €1,945m, delivering stable organic net sales of +0.1% (‑14.6% reported). On a 9-month basis (YTD), Net Sales were €7,199m, down organic ‑4.4% (‑14.8% reported), with material adverse impacts from foreign exchange (‑€515m, mainly USD/INR/TRY) and Group structure (‑€393m, primarily the Wines & Imperial Blue disposal). Q3 showed sequential improvement versus H1 with volumes back to growth and broadening recovery outside the US and China.

Top-line and volumes

Q3 FY26 organic net sales +0.1% and reported net sales down ‑14.6%; group volumes in Q3 grew +4% and Strategic International Brands volumes +3%. Excluding the US (Q3 ‑12%) and China (Q3 ‑7%), the rest of the world grew ~+5% in Q3.

Regional performance

Americas Q3 organic ‑8% (USA Q3 ‑12%, YTD ‑14%; Canada double‑digit Q3 growth; Brazil returned to growth). Asia‑RoW Q3 +6% (India Q3 +11%/YTD +6%; China Q3 ‑7%/YTD ‑24%). Europe Q3 +1%/YTD ‑2% with Q3 recovery. Global Travel Retail Q3 +11%/YTD +2%, though FY26 GTR now expected slightly down due to Middle East travel disruption.

Brand and category trends

Strategic International Brands Q3 +2%/YTD ‑5% (strength in Ballantine’s, Royal Salute, Malibu; Perrier‑Jouët strong YTD). Strategic Local Brands Q3 +1%/YTD ‑1%. Specialty Brands Q3 ‑9%/YTD ‑8% (offsetting Bumbu and Código growth). RTDs continue to accelerate: Q3 +26% / YTD +16%.

Outlook and guidance

Pernod Ricard expects FY26 organic net sales to decline approx. ‑3% to ‑4% (transition year with H2 improvement). A&P investment to remain ~16% of sales. Management expects to defend organic operating margin, deliver one third of a €1bn FY26–FY29 efficiency program by year end, and pursue strict cost control.

Cash, capital allocation and dividend

Focus on cash generation: strategic investments now expected below €700m for FY26 (medium‑term normalizing to ≤€800m p.a.), targeting ~80%+ cash conversion. Interim dividend €2.35 per share to be detached July 22 and paid July 24; final dividend subject to AGM approval on Nov 20.

Balance‑sheet headwinds

Reported decline is significantly affected by FX (expected to remain a significant negative for FY26) and prior disposals (notably Wines & Imperial Blue). Pernod Ricard targets deleveraging to bring net debt/EBITDA below 3x by FY29.