Pernod Ricard (RI) Q3 2025 earnings summary

Executive summary

• Q3 organic sales declined 3% year-over-year, with reported sales also down 3%; year-to-date organic sales are down 4% and reported sales down 5%, impacted by a -€145m FX effect.

• 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 and other emerging markets.

• Geographic and portfolio diversification helped mitigate adverse impacts, and operational efficiencies continue to be prioritized.

Financial highlights

• U.S. Q3 net sales up 2%, year-to-date down 5%; Americas Q3 up 3%, YTD down 2%; sell-out gap to market narrowing for key brands.

• China Q3 net sales down 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.

• Europe shows resilience with growth in France and UK, but declines in Germany and Spain due to macro factors and Easter timing.

Outlook and guidance

• Fiscal 2025 outlook confirmed: low single-digit decline in organic net sales, with sustained organic operating margin.

• Tariff scenario risk of €200 million annualized (mainly China and U.S.) incorporated into guidance.

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

• Expect modest group organic sales growth in Q4 as technical phasing reverses; sequential improvement in top line expected for FY 2026.

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