Pernod Ricard (RI.FR), the European alcohol industry giant, reported a 3% decline in organic sales for the fiscal year ending in June 2025, which was slightly better than the forecast of a 3.2% decline. Operating profit from regular activities decreased by 0.8%, while the market expected a decline of 3%. Earnings per share from recurring activities stood at €7.26, exceeding the consensus by 3.9%. Regional results were mixed: growth in India supported sales in Asia, but China weakened the results due to weak demand and an anti-dumping investigation. The US saw a 6% decline in sales for the full year, and the group expects further distributor inventory adjustments in 2026. Management warned that the first quarter of fiscal 2026 will see sales declines, but expects improvement in the second half of the year. Analysts point to pressure on margins and a moderate outlook for 2026, although in the medium term, the company confirms its ambitious organic sales growth targets of 3-6% per annum for 2027-2029. The group is also implementing a €1 billion cost-saving plan for 2026-2029 to support margin expansion and improve efficiency.
Key results and comparison with expectations:
-
FY25 organic sales: -3% vs. -3.2% expected (better than forecast)
- Operating profit (organic): -0.8% vs. -3% expected (significantly better)
- EPS from recurring operations: EUR 7.26 vs. EUR 6.93 forecast (+3.9%)
- FY25 revenue: €10.96 billion
- FY25 operating profit: EUR 2.95 billion
- Sales in China FY25: -21% y/y (negative impact: weak demand, anti-dumping investigation)
- FY25 sales in the US: -6% y/y (further weakening due to inventory adjustments and tariffs)
- FY26 consensus forecasts: +0.5% organic sales growth vs. -3% in FY25 (moderate rebound, burden in Q1 2026)
The company's charts look interesting after today's session. The shares are breaking through the 50-week EMA (blue curve) for the first time since August 2023. What's more, looking at the 14-week RSI indicator, we can also see that the upward momentum is now the strongest since then. On the W1 interval, the most important support point remains the 50-week EMA, and on the D1 interval, it is the 200-day EMA, which is also clearly being broken today.
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Source: xStation
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