Pernod Ricard Sa Stock Earnings Reports

Pernod Ricard reported FY25 organic net sales down 3% (reported -6%), driven by significant declines in China (-21% organic), the U.S. (-6% organic) and Global Travel Retail (-13%). Volumes recovered (+2% for the full year) for a third consecutive semester. Profit from recurring operations was broadly stable organically (-0.8%) while organic operating margin expanded ~64 basis points, helped by strict cost discipline and completion of a EUR 900m efficiency program. Free cash flow improved to EUR 1.133bn (+18%) with improved cash conversion (74%). The group completed wines disposals and announced the planned disposal of Imperial Blue (India). Management proposes a stable dividend of EUR 4.70 per share. FY26 is described as a transition year with Q1 headwinds (distributor inventory adjustments in the U.S., distributor overhang and weak consumer demand in China, and excise increases in Maharashtra, India) skewing recovery toward H2. Strategic posture: continue brand investment (~16% A&P), pursue a new EUR 1bn efficiency program through FY29, normalize strategic investments below EUR 900m in FY26, target improved cash conversion (~80%) and medium-term organic growth of 3–6% annually with continued margin expansion.