Pernod Ricard fiscal 2026 sales fall nearly 4%

Pernod Ricard fiscal 2026 sales fell nearly 4% organically worldwide, with the United States down about 14%, chairman and chief executive Alexandre Ricard said, as the group pointed to ready-to-drink cocktails as a growth priority.

The Paris-based group, whose fiscal year runs from July to June, closed the twelve months to 30 June 2026 with reported net sales of €9.404 billion, down 14.2% including currency and portfolio effects. Stripped of those effects, organic net sales fell 3.9%, the company said in its 27 August results statement.

Pernod Ricard fiscal 2026 sales by region

RTDs are a priority for us. They're a great complement to our portfolio.

The Americas posted an organic decline of 10%, driven chiefly by the United States, where organic net sales dropped 14%. Europe fell 3% organically and Asia-RoW was flat for the year, with weak demand in China weighing on the region despite gains elsewhere.

"Our fiscal year 2026 was characterized by a contrasted environment, with continued softness in the U.S.," Ricard told analysts on the results call. He added that the group does not expect the US market to return to growth before fiscal 2029.

Profit from recurring operations fell to €2.423 billion, down 17.9% on a reported basis and 5.2% organically. Group share of net profit came to €1.203 billion, a 26% drop, while free cash flow rose 6% to €1.197 billion on improved cash conversion.

Ready-to-drink cocktails as counterweight

Pernod Ricard named RTDs one of its few growth categories, with organic sales up 12% across Canada, Australia and Western Europe. "RTDs are a priority for us. They're a great complement to our portfolio," Ricard said, adding that the group intends to invest behind the category and smaller formats as core spirits volumes soften.

The results cap a year in which the world's second-largest spirits group navigated weak demand in China alongside US destocking. Cross-border trade tensions have added to the pressure too, illustrated by Canada's ban on US alcohol imports imposed this summer, while distribution has had its own reckoning after Southern Glazer's $12.5m bribery settlement in the US. Pernod Ricard nonetheless proposed a dividend of €4.70 per share, stable versus fiscal 2025, subject to shareholder approval.

For fiscal 2027, the group has guided to broadly stable organic net sales and said it now targets the lower end of its historical 3%-to-6% annual growth range through 2029 — a recalibration analysts have read as a sign that the US recovery will take longer than once assumed.