Pernod Ricard ended its 2025 fiscal year with a net profit attributable to shareholders of €1.626 million, a 10% increase compared to the previous year, despite a context of economic slowdown and geopolitical uncertainties.

This positive performance was achieved despite a drop in sales, which totaled €10.959 million, reflecting an organic decrease of 3% (-5,5% reported), mainly due to weak demand in strategic markets such as China and the United States, and the unfavorable exchange rate impact.

Recurring operating profit stood at €2.951 million, with a slight organic decrease of 0,8%. However, the company managed to expand its organic operating margin by 64 basis points, driven by the completion of an ambitious €900 million efficiency program and rigorous cost management discipline. Free cash flow reached €1.100 million, an increase of 18%, supported by efficient working capital management.

Uneven geographic performance

Pernod Ricard's performance varied significantly by region. In the Americas, growth in Canada and Brazil contrasted with a 6% drop in sales in the US, impacted by weaker demand and uncertainty surrounding trade tariffs, now partially resolved. The company estimates that the annualized impact of tariffs imposed by the US and China will be €80 million, well below the €200 million initially projected.

In Asia, results were mixed: India posted robust 6% growth, driven by demand for premium brands, while China recorded a 21% drop in sales, penalized by reduced consumption and regulatory uncertainties, including the end of an anti-dumping investigation . The company forecasts a further sharp decline in sales in China in the first quarter of 2026, before a possible stabilization.

In Europe, sales fell by 2%, although they remained stable excluding the Russian market. France and Eastern Europe performed well, while Germany and Spain recorded declines. The travel retail channel fell by 13%, heavily penalized by the suspension of cognac imports in the Chinese duty-free market.

Perspectives

Pernod Ricard continues to pursue a long-term strategy, with €1.200 billion invested in capital expenditure and strategic inventory. The company has also maintained active management of its portfolio, including the sale of businesses such as Wines and Imperial Blue. The proposed dividend is €4,70 per share, reflecting the company's commitment to financial sustainability and creating value for shareholders.

Despite anticipating a challenging first quarter in fiscal year 2026, Pernod Ricard believes in a gradual recovery throughout the fiscal year, especially in the second half. CEO Alexandre Ricard stated that "we will do better than this year," although he acknowledged that it is still too early to provide concrete forecasts.

The company maintains its strategic direction for the medium term, reiterating its target of annual organic sales growth between 3% and 6% in the period from 2027 to 2029, as well as a sustained expansion of the operating margin.