France's Pernod Ricard Q1 sales fall marginally, flags weakness in US and China markets

By Reuters News


Overview

  • France-based spirits and champagne maker's Q1 FY27 net sales fell 0.9% organically

  • Sales declined in US and China due to inventory adjustments; India saw strong double-digit growth

  • Company expects FY27 organic net sales to be broadly stable amid market uncertainty


Outlook

  • Pernod Ricard expects FY27 organic net sales to be broadly stable

  • Company projects declines in US and China, with ongoing growth in Rest of World, notably India

  • Medium-term organic net sales growth seen near lower end of +3% to +6% range for FY27-29


Result Drivers

  • INVENTORY ADJUSTMENTS - Co said sales in US and China declined in Q1 due to inventory adjustments

  • STRONG INDIA DEMAND - Co said India sales grew +19% in Q1, driven by strong consumer demand and premiumisation

  • PRODUCT INNOVATION - Co highlighted new product launches including Malibu Pink and Skrewball Peanut Butter & Jelly whiskey as supporting performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

EUR 2.23 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the distillers & wineries peer group is "buy."

  • Wall Street's median 12-month price target for Pernod Ricard SA is €69.50, about 5.1% above its October 14 closing price of €66.10

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 12 - China gloom hits LVMH, dims hopes of luxury revival

  • Oct 14 - French cosmetics facing delays clearing China customs, says industry association


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.