Pernod Ricard (RI) Q3 2025 earnings summary

Executive summary

• Q3 FY25 organic net sales declined 3% year-over-year to €2,278m; 9M FY25 organic net sales declined 4% to €8,454m, with reported sales down 5% due to a -€145m FX impact.

• Volumes grew 1% year-to-date, but price/mix was -5% due to negative market mix effects.

• Technical phasing issues in Q3 (India customs, Travel Retail, late Easter) are expected to reverse in Q4.

• Despite challenges, two-thirds of sales regions are growing, with resilience in Europe and strong growth in India, Turkey, South Africa, Brazil, and Canada.

• Geographic and portfolio diversification, along with operational efficiencies, helped mitigate adverse impacts.

Financial highlights

• 9M FY25 volumes grew 1%, but price/mix effect declined 5% due to negative market mix.

• U.S. Q3 net sales grew 2%, but year-to-date are down 5%; sell-out gap to market is narrowing.

• China Q3 net sales declined 5%, year-to-date down 22%, with sharp declines in Martell but strong growth in premium brands.

• India Q3 net sales up 1%, year-to-date up 5%, with strong underlying demand and premiumization.

• Global Travel Retail Q3 net sales down 31%, year-to-date down 17%, mainly due to suspension of cognac in China and high prior-year comps.

Outlook and guidance

• FY25 outlook confirmed: low single-digit decline in organic net sales, with sustained organic operating margin.

• Tariff scenario risk of €200m annualized (China €140m, U.S. €60m) incorporated into guidance.

• A&P spend to remain at ~16% of net sales; strict cost discipline maintained.

• Sequential improvement in organic sales growth expected for FY26.

• Interim dividend of €2.35 per share to be paid in July 2025.