Pernod Ricard (RI) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales were €2,234m, down 0.9% organically and 6.3% reported; performance improved sequentially in a volatile, uneven environment.

• Volumes returned to growth at 6%, including 2% growth in Strategic International Brand volumes.

• Sales declined in the U.S. and China amid inventory adjustments; India and other markets grew, and underlying China depletions returned to growth.

Financial highlights

• Organic net sales declined 0.9% (€21m); reported sales fell 6.3% (€151m), including €127m perimeter impact and €3m FX impact.

• Regional organic sales: Americas -9%, Asia / Rest of World +9%, Europe -6%.

• Stable pricing and positive volume were offset by geographic mix, as higher-profit U.S. and China markets declined and India benefited from IPO-related pipe fill.

Outlook and guidance

• FY27 organic net sales guidance remains broadly stable, with declines expected in the U.S. and China and positive Rest-of-World momentum, notably India.

• Organic operating margin will be strongly defended through strict cost control and accelerated operational efficiencies; strategic investments are expected at c. €700m.

• U.S. and China inventory adjustments are expected to ease from Q1 but continue through the year; China underlying trends are expected to improve.

• FY27–29 organic sales growth target averages close to the lower end of the +3% to +6% range, with organic operating margin expansion expected.