Pernod Ricard SA reported a 3.9% decline in organic sales to €9.4 billion for fiscal 2026, marking the company’s third consecutive annual decrease. The decline exceeded the 3.7% drop forecast by S&P Global Visible Alpha, with organic recurring operating profit falling 5.2% to €2.42 billion, broadly in line with expectations.
The company’s shares fell 5.18% to €64.10, the lowest level since July 27, underperforming the CAC 40 index, which rose about 0.3%. The stock’s decline reflected broader concerns over weak demand in key markets, particularly the United States and China.
In the United States, sales dropped 14% due to subdued consumer confidence, reduced spirits consumption, and ongoing inventory adjustments. China, a critical market for premium spirits such as cognac, saw sales decline 19% amid weak consumer sentiment and pressure on prestige categories. Excluding China, Asia and the Middle East reported flat sales, while India recorded a 7% increase, or 9% excluding the Imperial Blue brand.
Ready-to-drink products were a bright spot, growing 12% year-over-year. The company’s efficiency program, initially targeting €1 billion in savings, is being accelerated, with half already delivered in fiscal 2026. Full completion is now expected by fiscal 2028, one year ahead of schedule.
Pernod Ricard maintained its dividend at €4.70 per share, above the €4.09 consensus, offering shareholders the option to receive the final payment in shares. The company also reduced its strategic investment target to no more than €700 million, down from €800 million, and reaffirmed its goal of keeping net debt below three times EBITDA by fiscal 2029.
