Pernod Ricard SA
(OTCPK:PDRDF)
$
75.5
-0.52 (-0.68%)
Market Cap: 18.54 Bil
Enterprise Value: 32.83 Bil
PE Ratio: 11.57
PB Ratio: 1.05
GF Score: 68/100 
Full Year 2026 Pernod Ricard SA Earnings Call Transcript
Aug 27, 2026 / 07:00AM GMT
Release Date Price:
$76.02
(-1.49%)
Key Points
Positve
- Pernod Ricard SA (PDRDF) accelerated its EUR1 billion operational efficiencies program, delivering half of the target in fiscal year '26 and now expecting full delivery by fiscal year '28, one year ahead of plan.
- The company achieved a strong cash conversion rate of 91%, up from the 80% target, and increased free cash flow by 6% to EUR1.2 billion.
- Excluding the U.S. and China, the rest of the world grew by 0.5% organically, with strong momentum in India, Japan, Türkiye, and South Africa, and the company gained market share in its top 16 markets.
- Pernod Ricard SA (PDRDF) maintained its dividend at EUR4.70 per share, with the reference shareholder opting for shares, supporting the deleveraging trajectory.
- The company is leveraging consumer insights to drive innovation, with successful launches like Malibu Pink and a strong focus on RTDs and small formats, which are gaining traction in key markets.
- The India-UK free trade agreement is now in full effect, providing a boost to exports and enabling price adaptations to enhance brand affordability and relevance in India.
Negative
- Pernod Ricard SA (PDRDF) experienced a 14% organic decline in U.S. sales due to inventory adjustments and soft consumer demand, with sellout still down 7% versus market.
- China sales fell 19% organically, impacted by weak consumer sentiment, regulatory measures, and a sharp decline in prestige categories like Martell, leading to market share losses in Cognac.
- The Middle East conflict negatively impacted the fourth quarter, with sales down 29% in that region, and is expected to weigh on the first quarter of fiscal year '27.
- Organic operating margin declined by 35 basis points, pressured by negative price mix, tariffs, and cost inflation, despite cost-saving efforts.
- Net debt to EBITDA ratio increased to 3.7%, and the company aims to reduce it below 3 times by fiscal year '29, indicating elevated leverage.
- The company's medium-term organic net sales growth framework is now expected to be close to 3%, at the lower end of its 3-6% range, reflecting persistent U.S. market softness.
Joelle Ferran
Pernod Ricard SA - Global Vice President, Investors Relations & Financial Communication
Good morning, everyone, and thank you for joining us to Pernod Ricard's fiscal year '26 full year results.
I'm joined today by Alexandre Ricard, Chairman and CEO, and Mauve Croizat, Group Deputy CFO. We are delighted to welcome Mauve to her first earnings call with us.
Alexandre, over to you.
Alexandre Ricard
Pernod Ricard SA - Chairman of the Board, Chief Executive Officer, Member of the Executive Board, Member of the Executive Committee
Thank you, Joelle, and good morning, ladies and gentlemen.
Maybe just before starting, I'd like to introduce Mauve Croizat, our deputy CFO and soon to be CFO as of October 1st. Maybe Mouve, can you say a few words about you?
Mauve Croizat
Pernod Ricard SA - Executive Vice President, Finance & Tech
Yes, thank you, Alex. Very happy to be with you today. So I usually say that I'm born and raised Pernod Ricard.
I was very lucky to move
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