Pernod Ricard (RI) Q3 2026 earnings summary

Executive summary

• Q3 organic net sales grew +4.1% sequentially from H1, while reported sales declined -14.6% due to negative FX and perimeter effects.

• Volumes returned to growth in Q3 at +4%, with strategic international brand volumes up +3%.

• Excluding the U.S. and China, Q3 sales in the rest of the world rose +5%, with strong momentum in emerging and several mature markets.

• Year-to-date organic sales are down -4.4%, with the U.S. at -14% and China at -24%.

• Discussions regarding a potential business combination with Brown-Forman are ongoing.

Financial highlights

• Q3 reported sales down -14.6%, impacted by -7% FX and -7.7% perimeter effects from disposals.

• Year-to-date reported sales down -14.8%, with FX -5.9% and perimeter -4.5%.

• Q3 volume growth +4%; year-to-date volumes down -1.6%.

• Strategic international brand volumes year-to-date down -1.4%, but up +1.4% excluding U.S. and China.

• Negative FX impact of -€515m, mainly from USD, INR, and TRY.

Outlook and guidance

• Fiscal 2026 is seen as a transition year; full-year organic net sales expected to decline -3% to -4%.

• A&P investment ratio to remain around 16%.

• Strategic investment for FY26 expected below €700 million; cash conversion target circa 80%+.

• FX impact expected to be significantly negative.

• Medium-term (FY27-29) organic net sales growth targeted at +3% to +6% p.a., with annual margin expansion.