Pernod Ricard stock: Q1 sales fall as India offsets US, China

Pernod Ricard's first-quarter sales showed a sharply divided regional picture on October 15, 2026. In its Q1 FY27 sales release, the spirits group said organic net sales fell 0.9 percent to 2.234 billion euros. Reported sales declined 6.3 percent, reflecting portfolio changes and foreign-exchange effects as well as the underlying performance.

Pernod Ricard stock traded at 70.46 euros on Lang & Schwarz at 12:20 CET on Thursday, November 5, 2026. Investors can follow the real-time quote of Pernod Ricard stock.

India growth offsets regional weakness

India was the clearest growth engine in the quarter, with sales rising 19 percent. Pernod Ricard attributed the performance to strong consumer demand, continuing premiumisation and broad-based gains across imported spirits and local brands. The company also said preparatory work for a potential Indian initial public offering supported a favourable pipe-fill effect, while stressing that any IPO remains subject to board approval.

The picture was weaker in the group's two other major markets. Sales declined 10 percent in the United States, where inventory adjustments continued to weigh on demand. China fell 25 percent as trade inventories were reduced, although Pernod Ricard said underlying depletions returned to growth ahead of the Mid-Autumn Festival.

Outside the United States and China, sales in the rest of the world rose 4 percent. Asia excluding China delivered particularly strong momentum, while Europe declined 6 percent and global travel retail fell 4 percent. Group volumes nevertheless returned to growth, increasing 6 percent, with Strategic International Brand volumes up 2 percent.

Stable outlook keeps focus on execution

Management expects organic net sales to remain broadly stable in FY27. It anticipates continued declines in the United States and China, partly offset by positive momentum in the rest of the world, especially India. The company plans to maintain advertising and promotion investment at about 16 percent of sales and defend organic operating margin through cost control and operational-efficiency measures.

For FY27 to FY29, Pernod Ricard is aiming for average organic net sales growth near the lower end of its 3 to 6 percent target range. It also expects about 700 million euros of strategic investment, cash conversion near 90 percent and a net debt-to-EBITDA ratio below three times by FY29. Those targets leave the share sensitive to the pace of recovery in the United States and China, while India remains a material source of growth.

The group has also reshaped its funding profile. In a October 28 release, Pernod Ricard said investors had tendered and the company accepted 1.219 billion euros of existing notes, following a 1.5 billion euro issue of perpetual subordinated notes. The company said the transaction would help manage its capital structure and debt-maturity profile.

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The next scheduled corporate event is the annual general meeting on November 20, 2026. More news and analyses on Pernod Ricard stock are available in the company topic.