Pernod Ricard reported stable organic net sales growth of 0.1% in the third quarter of fiscal 2026, as improving trends across most markets helped offset continued weakness in the United States and China, while reported sales fell 14.6% because of currency effects and business disposals.
The French spirits group said Q3 net sales totalled €1.945 billion, while nine-month sales reached €7.199 billion, down 4.4% organically and 14.8% on a reported basis. The reported decline was driven mainly by foreign exchange headwinds linked to the US dollar, Indian rupee and Turkish lira, and by the disposal of the Wines and Imperial Blue businesses.
Chief Executive Alexandre Ricard said the company was actively managing what was within its control through efficiency measures, targeted investments and organisational adjustments to support future growth and cash generation. He described fiscal 2026 as a transition year marked by improving trends in the second half.
Regional performance
Performance varied sharply by region. The Americas posted an 8% decline in Q3, with the US market down 12% amid softer holiday demand and a cautious consumer environment. Canada delivered solid growth, supported by ready-to-drink products, Canadian whisky and Jameson, while Brazil returned to growth after the easing of disruptions linked to the methanol crisis.
India Stands Out with 11% Growth
Asia and the rest of the world grew 6% in Q3. India stood out with 11% growth, benefiting from strong consumer demand, ongoing premiumisation and broad-based gains across both imported and local brands. Imported spirits including Jameson, Absolut and Scotch whiskies recorded strong double-digit growth. China remained challenging, with sales down 7% as weak consumer confidence and a tighter regulatory environment weighed on demand, although premium brands showed some resilience.
Europe returned to growth with a 1% increase in Q3, helped by strong performances from Bumbu, Perrier-Jouët and Jameson. Spain posted solid growth, while France and Germany remained weaker but showed signs of improvement. Global Travel Retail grew 11% in the quarter, driven by a rebound in China duty-free sales and strong festive demand around the Lunar New Year.
Brands and outlook
By brand category, Strategic International Brands rose 2% in Q3, led by Ballantine’s, Royal Salute and Malibu, while Strategic Local Brands increased 1%. Ready-to-drink products continued to outperform, surging 26% in the quarter.
Looking ahead, Pernod Ricard said the operating environment remains volatile and uncertain, particularly because of the ongoing conflict in the Middle East. The company now expects full-year organic net sales to decline by 3% to 4%, slightly worse than previously anticipated.
Management said it would continue to defend operating margins through strict cost control and a €1 billion operational efficiency programme running from fiscal 2026 to 2029. The company also reiterated its medium-term target of returning to average annual organic sales growth of 3% to 6% from fiscal 2027 to 2029, supported by continued investment in brands and improved cash generation.
Pernod Ricard announced an interim dividend of €2.35 per share, to be detached on July 22 and paid on July 24, with the final dividend subject to shareholder approval in November.