France · Delayed Price · Currency is EUR Pernod Ricard Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw a sequential improvement in organic net sales (+4.1%), with strong growth in India and travel retail, while the U.S. and China remained weak. Full-year organic net sales are expected to decline 3–4% due to ongoing Middle East conflict and FX headwinds.
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H1 FY2026 saw a 6% organic sales decline, mainly from U.S. and China, but growth in other regions and strong cash generation from efficiency gains. Strategic investments were reduced, and the outlook remains positive with a focus on deleveraging and innovation.
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Organic sales declined 7.6% in Q1 FY2026, driven by weakness in the U.S., China, and India, but positive trends in other regions partially offset declines. Guidance remains unchanged, with expectations for improved performance in H2 and continued focus on margin defense and operational efficiency.
Fiscal Year 2025
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The meeting reviewed a resilient financial performance amid global headwinds, with stable dividends, dynamic portfolio management, and strong CSR progress. All resolutions, including board renewals and compensation policies, were approved.
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Organic net sales declined 3% year-over-year, but volumes grew and margin expanded due to strong cost discipline and EUR 900 million in efficiencies. FY26 is expected to be a transition year with improving trends, though Q1 will be impacted by inventory adjustments and regulatory headwinds.
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Pricing and revenue management have been reset for sharper market positioning, with increased investment in key brands and innovation. Wholesaler relationships and portfolio focus have been strengthened, driving positive momentum and narrowing market gaps.
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Q3 organic sales declined 3% year-over-year, but volumes grew 1% and technical phasing issues are expected to reverse in Q4. FY25 guidance of a low single-digit sales decline and sustained operating margin is confirmed, with strong growth in India and resilience in Europe.
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H1 FY25 saw resilient volume growth and margin expansion despite a 4% sales decline, with efficiency gains offsetting market headwinds in China and the U.S. FY25 outlook was revised to a low single-digit sales decline, but medium-term growth and cash generation targets remain robust.
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Q1 FY25 saw a 5.9% organic net sales decline, mainly due to weakness in the U.S. and China, while India and several other markets showed resilience. Full-year guidance is maintained for modest growth and stable margins, with efficiency and cost discipline prioritized.
Fiscal Year 2024
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The meeting reviewed stable financials amid tough U.S. and China markets, confirmed a EUR 4.70 dividend, and approved all resolutions. Strategic focus remains on premiumization, digital transformation, and sustainability, with continued investment in growth and resilience.
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Organic net sales were stable at -1% (or +1% ex-Russia), with profit from recurring operations up 1.5% organically. Despite U.S. and China headwinds, strong performance in other regions, margin expansion, and active portfolio management support confidence in medium-term growth targets.