Overview

• France spirits and wine maker's Q3 FY26 organic net sales grew 0.1% amid volatile market

• Nine-month organic net sales fell 4.4%, impacted by FX and disposals

• Company expects FY26 organic net sales to decline 3-4% due to Middle East conflict

Outlook

• Pernod Ricard, which is in talks to merge with U.S. rival Brown-Forman, expects FY26 organic net sales to decline by 3% to 4%

• Company aims for c.16% A&P investment ratio and strategic investments below €700 mln in FY26

• Medium term (FY27-29), company projects organic net sales growth of 3%-6% per year

Result Drivers

• VOLUME RECOVERY - Group volumes returned to growth in Q3, with total group volumes up 4% and Strategic International Brands up 3%

• REGIONAL VARIATION - Strong growth in emerging markets and several mature markets offset declines in the US (-12%) and China (-7%)

• INNOVATION & CONSUMER TRENDS - Co cited new product launches, affordability initiatives, and consumer experience activations as supporting sales momentum

Company press release: ID:nBw72x73ba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the distillers & wineries peer group is "buy"

• Wall Street's median 12-month price target for Pernod Ricard SA is €92.00, about 37.3% above its April 15 closing price of €67.00

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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