Pernod Ricard Reports FY26 Sales Decline, Focuses on Efficiency
Pernod Ricard announced a 3.9% organic sales decline for FY26, with a company focus on improving cost efficiency and strengthening cash flow.
Pernod Ricard, the world's second-largest wine and spirits producer, reported a 3.9% organic decline in sales for the fiscal year 2026, totaling €9.4 billion. The decrease was primarily attributed to softness in the United States and China markets.
The company highlighted disciplined execution and agility in navigating a transitioning market. Acceleration of its operational efficiency programs helped defend organic operating margins, with cost of sales decreasing by 8.0%. The €1 billion operational efficiencies program, initially targeted for FY26, is now expected to be fully delivered by FY28.
Free cash flow increased by 6%, with a significant improvement in cash conversion to 91%. The company proposed a stable dividend of €4.70 per share, offering shareholders an option for cash or shares for the final dividend.
Pernod Ricard plans to continue optimizing strategic investments for future growth while maintaining balance sheet discipline to support deleveraging and sustainable shareholder returns. The company noted improving sell-out trends in the US and a cautious optimism for recovery in China.