Pernod Ricard SA reported a 3.9% decline in organic sales to €9.4 billion for fiscal 2026, reflecting persistent weakness in key markets despite a moderation in the second half of the year.
The French spirits group’s organic recurring operating profit fell 5.2% to €2.42 billion, broadly in line with analyst expectations. Shares dropped 5.18% to €64.10, the lowest level since late July, underperforming the CAC 40 index which rose about 0.3%.
Regional performance highlighted divergent trends. The United States, Pernod Ricard’s largest market, saw sales decline 14% due to subdued consumer confidence, weak spirits consumption, and ongoing inventory adjustments. In China, sales fell 19% as consumer sentiment remained soft, particularly in prestige categories such as cognac. Conversely, India delivered 7% growth, or 9% excluding Imperial Blue.
Ready-to-drink products provided a bright spot, growing 12% globally. The company accelerated its €1 billion efficiency program, with half already delivered in fiscal 2026 and full completion now targeted for fiscal 2028, one year ahead of schedule. Strategic investment plans were reduced to no more than €700 million, down from €800 million previously.
Pernod Ricard maintained its dividend at €4.70 per share, exceeding consensus estimates of €4.09, and offered shareholders the option to receive the final dividend in shares. The group reaffirmed its target to keep net debt below three times EBITDA by fiscal 2029.
