Pernod Ricard Sa · EURONEXT:RI
Pernod Ricard Sa — Pernod Ricard S A — FY2025 Earnings Presentation
61 slides from Pernod Ricard Sa's earnings presentation, Aug 28, 2025
Slide 1: FY25 Sales and Results
FY25 Sales and Results 28th August 2025 Financial Year ended 30th June 2025 Growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding. Presentation can be downloaded from www.pernod-ricard.com Audit procedures have been carried out
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on estimates and forecasts reflecting management's current views and reasonable assumptions. Relating as they do to future events and circumstances and depending on factors outside Pernod Ricard’s control, forward-looking stat
Slide 3: Steering through a challenging environment with agility, discipline and strategic conviction
Steering through a challenging environment with agility, discipline and strategic conviction Consistent organic operating margin expansion, investing in brand desirability and sustainable long-term growth Net Sales Continued volume recovery (+2%) with 3 consecutive semesters of volume growth -3.0%
Slide 4: Resilient financial performance with Operating Margin expansion, strong discipline on costs and improved cash generation
Resilient financial performance with Operating Margin expansion, strong discipline on costs and improved cash generation Net Sales Organic -3.0% Free Cash-Flow +18% €10,959m Reported -5.5% €1.1bn EPS PRO Organic -0.8% -8% €7.261 €2,951m Reported -5.3% DPS flat €4.702 Operating Organic +64bps Net Deb
Slide 5: Broad-based and balanced geographic footprint partially mitigates the impact of sharp declines
Broad-based and balanced geographic footprint partially mitigates the impact of sharp declines in both China and Travel Retail Asia and softness in the US EUROPE ASIA AMERICAS GROUP ORGANIC NET SALES GROWTH ORGANIC NET SALES GROWTH REST OF WORLD -3% -2% ORGANIC NET SALES GROWTH ORGANIC NET SALES GRO
Slide 6: Diversified portfolio with strong brand performances across all regions
Diversified portfolio with strong brand performances across all regions Organic Growth Organic Organic +3% Growth Growth >11m +2% cs >12m +2% cs Strong DD growth Strong DD growth Mid-teens growth Strong DD growth Mid-teens growth HSD growth HSD growth DD growth Sell-out stabilised Organic Organic Or
Slide 7: Volumes continue to grow in H2 leading to 3 consecutive semesters in growth
Volumes continue to grow in H2 leading to 3 consecutive semesters in growth Volume change Pre-Covid Post COVID Rebound Normalisation Recovery Average H1 FY18 to H1 FY20 H2 FY20 to H1 FY21 H2 FY21 to H1 FY23 H2 FY23 to H1 FY24 H2 FY24 to H2 FY25 volume growth c.+4% c.-12% c.+12% c.-4% c.+2% per semes
Slide 8: Market leading position and gaining share in the majority of our markets
Market leading position and gaining share in the majority of our markets Gaining or maintaining share in 12 of 17 top markets1 Leader in the International Premium Plus Spirits sector, excluding the US Gaining in Germany Gaining in France Gaining in Maintaining in UK Maintaining in China Cognac categ
Slide 9: Innovations and marketing investments driving long term sustainable brand equity
Innovations and marketing investments driving long term sustainable brand equity A&P ratio maintained at c.16% of Net Sales, prioritizing the US through sharper allocation Accelerating innovation to tap into expanding consumer occasions including RTD and Non- Alcohol Successful launches in FY25 RTD
Slide 10: Delivering sustainable growth throughout our value chain
Delivering sustainable growth throughout our value chain Strong progress on our 2030 roadmap Reducing scopes 1 & 3 Providing a fair and safe work agricultural emissions (- environment for all our employees 30.3% vs FY22 by 2030) FY25 -10% Achieved gender pay equity & gender balanced top manageme
Slide 11: FY25 Sales Update
FY25 Sales Update Growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding. This presentation can be downloaded from www.pernod-ricard.com
Slide 12: USA / India
Spirits market (inc. RTD) in slight growth, impacted by subdued consumer confidence and economic moderation. Narrowing gap-to-market through sharp execution USA Weight in Net Sales1 19% Organic Net Sales -6% • Sell-out volume and value gap-to-market continues to narrow, reflecting focus on execution
Slide 13: China / Global Travel Retail
Challenging macro economic environment and continuing weak consumer sentiment China impacting demand Weight in Net Sales1 8% Organic Net Sales -21% • Decline in sales of Martell and Scotch brands • Premium brands including Jameson, Absolut and Olmeca in strong growth • Developing consumer awareness
Slide 14: Regions
Regions • Resilient sales in Europe Europe • Particularly dynamic across Eastern Europe, while Western Europe sees growth in France, with Weight in Net Sales2 29% declines in Germany and Spain Organic Net Sales -2% • Gaining market share in France and Germany and maintaining share in UK1 • Good bran
Slide 15: FY25 Financial Update
FY25 Financial Update Growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding. This presentation can be downloaded from www.pernod-ricard.com
Slide 16: Strong organic Operating Margin expansion despite top-line decline
Strong organic Operating Margin expansion despite top-line decline, with sustained brand building investments and a continued very strong discipline on costs Sharp marketing resource allocation and focus on return on spend to maximise growth opportunities Reported +6bps Organic +64bps Organic PRO¹ 2
Slide 17: Fit for Future and operational efficiency initiatives completed, c.€900m efficiencies
Fit for Future and operational efficiency initiatives completed and contributed c.€900m efficiencies between FY23 to FY25, with half delivered in FY25 c.€600m from Operations3 and c.€300m from Structure, with a c.12% reduction in SG&A headcount4 Cumulative2 FY23 to FY251 Optimising closures, remov
Slide 18: EPS down 8% mainly due to the unfavorable FX
EPS down 8% mainly due to the unfavorable FX Reported € millions FY24 FY25 ∆ Profit from Recurring Operations 3,116 2,951 -5% Financial Expenses from Recurring Operations (417) (455) Income tax on Recurring Operations (646) (619) Minority interests and other (53) (49) Group share of Net Profit from
Slide 19: Group Share of Net Profit increased by 10%
Group Share of Net Profit increased by 10% Reported € millions FY24 FY25 ∆ Group share of Recurring Operations 2,000 1,829 -9% Profit from Non-recurring operations (392) (208) Non-recurring finance income (expenses) (20) (38) Non-recurring corporate income tax (120) 45 Minority interests from non-re
Slide 20: Improved Free Cash Flow with strong working capital management
Improved Free Cash Flow with strong working capital management offsetting decline in reported PRO € millions FY24 FY25 Reported ∆ %∆ Profit from Recurring Operations 3,116 2,951 (165) -5% Amortisation, depreciation, provision movements and other 452 389 (63) Self-financing capacity from recurring op
Slide 21: Continuous focus on cash generation and disciplined cash allocation leading to lower Net Debt
Continuous focus on cash generation and disciplined cash allocation leading to lower Net Debt Softer reported PRO, leading to an increase in Net Debt/ EBITDA ratio vs FY24 Net Debt / EBITDA ratio 3.1x 3.3x Net Debt / €10,951 EBITDA 305 €10,727 1,133 1,201 €m 3.3x¹ 151 164 30 Jun ’24 Free Cash M&A Le
Slide 22: Strong commitment to long term shareholder value creation
Strong commitment to long term shareholder value creation Proposed dividend¹ of €4.70 per share, stable versus FY24 3.3x €/share x 4.70 4.70 4.70 4.12 DPS €4.70 3.12 3.12 2.66 FY19 FY20 FY21 FY22 FY23 FY24 FY25 1.Subject to shareholder approval at AGM on 27th October 2025 22
Slide 23: Strategic update
Strategic update Growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding. This presentation can be downloaded from www.pernod-ricard.com
Slide 24: Navigating a challenging context with sharper strategic choices and a fit-for-future organization
Navigating a challenging context with sharper strategic choices and a fit-for-future organization FY24-25: Perfect Storm FY26-29: Transition and then new era of volatility & opportunity Navigating geo-political Leveraging our competitive Evolving Operating Model Value accretive and cash tensions and
Slide 25: Favourable trends underpin the long-term growth of premium spirits
Favourable trends underpin the long-term growth of premium spirits Powerful mega trends Evolving Enduring premiumization2 favouring high-potential consumer needs leveraging “less but better” markets driving Innovation Global growth in LDA1 Global growth in Middle Experiences +4.4% +5.7% & Affluent c
Slide 26: Spirits industry faces economic, cyclical headwinds in some key markets
Spirits industry faces economic, cyclical headwinds in some key markets Recent inflation2 still impacting Weakened consumer confidence in key markets of US and China1 consumer behaviour 9% 110 130 Wage 100 Growth 120 6 90 80 110 70 100 3 60 90 Inflation 0 0 0 Jul- Jul- Jul- Jul- Jul- Jul- May May Ma
Slide 27: Market strategy agility to exploit global presence balanced across regions
Market strategy agility to exploit global presence balanced across regions and between mature and emerging markets to deliver our +3% to +6% medium-term growth ambition Agile resource allocation between markets to capture growth opportunities Growth balanced between volume, price and mix EMEA 35% Am
Slide 28: Premium international spirits portfolio diversified across major Western style categories
Pernod Ricard’s premium international spirits portfolio is diversified across major Western style Spirits categories and balanced 50/501 between aged and non-aged brands to fully capture all moments of consumption Aged portfolio Non-Aged portfolio2 Mostly Anchored Mostly Geo-modular Timeless & Timel
Slide 29: Continuous active portfolio management to boost topline growth rate and improve margin
Continuous active portfolio management to boost topline growth rate and improve margin Selective disposals of non-strategic, non-core brands over last 2 fiscal years Completed disposals Announced1 disposals Closed in FY24 Closed in FY25 Wine portfolio Finnish portfolio Margin Accretive Focus on GM +
Slide 30: Deploy partnerships at scale to boost cultural relevance of our brands
Deploy partnerships at scale to boost cultural relevance of our brands, explore synergies with experiences and culturally relevant brand associations Deploy partnerships at scale to boost Explore long term synergy potential of Develop culturally relevant Brand cultural relevance of our key brands sp
Slide 31: Simplified organization leveraging group scale and consumer proximity
Simplified organization leveraging group scale and consumer proximity, anchoring a fit-for- future structure Executive Committee with deep Organisational simplification, industry experience leveraging scale and proximity Global Organisation Market Companies1 Alexandre Hélène Jean-Etienne Gilles Rica
Slide 32: Consistently delivering Organic Operating Margin expansion
Consistently delivering Organic Operating Margin expansion, building on digital transformation, operational efficiencies, continuous improvement and strict cost discipline Average organic Operating Margin expansion of: +39 bps p.a. since 2014 and + 55bps p.a. since 2019 213 Organic bps Efficiency in
Slide 33: Continuous focus on maximising cash generation from profitable growth
Continuous focus on maximising cash generation from profitable growth Cycle of accelerated investments in Capex and strategic inventories fueling future growth, now largely completed Average c. €1.3bn Free Cash Flow FY19- Average Historical cash conversion Capex and maturing inventories investments
Slide 34: Unchanged capital allocation priorities, underpinned by balance sheet flexibility
Unchanged capital allocation priorities, underpinned by balance sheet flexibility Financial policy aims to balance the deployment of capital for profitable growth and returning capital to shareholders While maintaining investment grade rating: 1. Investment in future organic growth, in particular th
Slide 35: Steering through a challenging environment with agility, discipline and strategic conviction
Steering through a challenging environment with agility, discipline and strategic conviction • Attractive long-term industry fundamentals • Broad-based and diversified geographical footprint • Most complete portfolio of actively managed, premium international spirit brands • Leading market share pos
Slide 36: FY26 Outlook
FY26 Outlook FY26 is expected to be a transition year with improving trends in Organic Net Sales, skewed toward H2 A decline in Q1 is expected, with distributor inventory adjustment in the US, continued soft consumer demand and inventory adjustment in China, the impact of Maharashtra excise policy c
Slide 37: Medium-term framework FY27-29
Medium-term framework FY27-29 Leveraging our unique broad-based and balanced geographic breadth and diversified portfolio of premium international spirits Projecting Organic Net Sales growth, aiming for the range of +3% to +6% p.a1 on average, with annual Organic Operating Margin expansion Anticipat
Slide 38: Appendix
Appendix Growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding. This presentation can be downloaded from www.pernod-ricard.com
Slide 39: Definitions and reconciliation of non-IFRS measures to IFRS measures
Definitions and reconciliation of non-IFRS measures to IFRS measures Pernod Ricard’s management process is based on the following non-IFRS measures which are chosen for planning and reporting. The Group’s management believes these measures provide valuable additional information for users of the fin
Slide 40: Upcoming Communications
Upcoming Communications Date (subject to change) Event 16th October 2025 Q1 FY26 Sales 27th October 2025 Annual General Meeting 19th February 2026 H1 FY26 Sales and Results 16th April 2026 Q3 FY26 Sales 40
Slide 41: Tariff estimate: c.-€80m gross annualized
Tariff estimate: c.-€80m gross annualized Tariff scenario Tariff rates Annualised Impact EU sourced 15% US UK sourced 10% c.-€35m 19% of Net Sales Canada & Mexico 0% subject to sourced USMCA exemption Cognac and Duty increase from 5% Whiskey imports to 10% in January 2025 China c.-€45m 8% of Net Min
Slide 42: Overall US alcohol consumption remains stable over the years
Overall US alcohol consumption remains stable over the years, though with reduced frequency, and amidst economic driven moderation Overall alcohol consumption frequency (occasions/per Monthly Alcohol Drinker Incidence1 (%) month) vs intensity (servings/occasion)2 53% 53% Frequency 11.0 10.6 2.5 3.0
Slide 43: Increasing US consumer preference for bottled spirits
Increasing US consumer preference for bottled spirits, growing its share of total servings within TBA1 US Monthly penetration for Bottled Spirits continues to Same trend amongst US GEN Z, with penetration Recent indicators that Gen Z drinking and buying trend up, while declining or flat for other ca
Slide 44: Market Share measures
Market Share measures Sources: Nielsen based on local data. Off-Trade International Spirits unless otherwise stated CANADA: excl. RTDs ACD Off Trade ending 31MAY25 UK: incl. RTDs Nielsen Off Trade ending JUNE25 & CGA On Trade ending MAY25 GERMANY: incl. RTDs ending 29JUNE25 POLAND: Mainstream+ Whisk
Slide 45: Emerging Markets
Emerging Markets Asia-Rest of World Americas Europe Angola Malaysia Argentina Albania Benin Maldives Barbados Armenia Burkina Faso Mali Bermuda Azerbaijan Cambodia Mauritius Bolivia Belarus Cameroon Mongolia Brazil Bosnia Cap Verde Morocco Caribbean Bulgaria China Mozambique Chile Croatia Congo Myan
Slide 46: Strategic International Brands’ performance
Strategic International Brands’ performance Volumes FY25 Organic Net Sales of which Volumes of which Price/mix growth FY25 (in 9Lcs millions) Absolut 12.3 +2% +2% (1)% Jameson 11.2 +3% +5% (2)% Ballantine's 9.1 +0% +3% (3)% Chivas Regal 4.8 +2% +2% +1% Ricard 4.2 (5)% (2)% (2)% Malibu 4.1 (10)% (6)%
Slide 47: Sales Analysis by Period and Region
Sales Analysis by Period and Region Net Sales FY24 FY25 Change Organic growth Group Structure Forex Impact (€ millions) Americas 3,340 29% 3,154 29% (186) (6)% (96) (3)% +40 +1% (129) (4)% Asia / Rest of World 4,973 43% 4,635 42% (338) (7)% (194) (4)% +4 +0% (148) (3)% Europe 3,285 28% 3,170 29% (11
Slide 48: Summary Consolidated Income Statement
Summary Consolidated Income Statement (€ millions) FY24 FY25 Change Net sales 11,598 10,959 (6)% Gross Margin 6,975 6,516 (7)% Advertising and promotions spend (1,872) (1,679) (10)% Contribution after A&P spend 5,103 4,837 (5)% Structure costs (1,987) (1,886) (5)% Profit from Recurring Operations 3,
Slide 49: Profit from Recurring Operations by Region (1/2)
Profit from Recurring Operations by Region (1/2) World (€ millions) FY24 FY25 Change Organic Growth Group Structure Forex impact Net Sales 11,598 100.0% 10,959 100.0% (639) (6)% (351) (3)% (12) (0)% (277) (2)% Gross margin 6,975 60.1% 6,516 59.5% (459) (7)% (268) (4)% (24) (0)% (166) (2)% Advertisin
Slide 50: Profit from Recurring Operations by Region (2/2)
Profit from Recurring Operations by Region (2/2) Asia / Rest of the World (€ millions) FY24 FY25 Change Organic Growth Group Structure Forex impact Net Sales 4,973 100.0% 4,635 100.0% (338) (7)% (194) (4)% +4 +0% (148) (3)% Gross margin 2,851 57.3% 2,620 56.5% (231) (8)% (131) (5)% +3 +0% (104) (4)%
Slide 51: Foreign Exchange Impact
Foreign Exchange Impact Average rates evolution On Profit from Forex impact FY25 On Net Sales Recurring (€ millions) FY24 FY25 % Operations US Dollar USD 1.08 1.09 (0.6)% (15) (8) Chinese Yuan CNY 7.82 7.85 (0.4)% (4) (2) Indian Rupee INR 89.89 92.59 (3.0)% (43) (15) British Pound GBP 0.86 0.84 +2.1
Slide 52: Sensitivity of profit and debt to EUR/USD exchange rate
Sensitivity of profit and debt to EUR/USD exchange rate Estimated impact of a 1% appreciation of the USD Impact on the income statement(1) (€ millions) Profit from recurring operations +13 Financial result (1) Pre-tax profit from recurring operations +12 Impact on the balance sheet (€ millions) Incr
Slide 53: Balance Sheet: Assets
Balance Sheet: Assets Assets 30/06/2024 30/06/2025 (€ millions) (Net book value) Non-current assets Intangible assets and goodwill 19,039 17,921 Tangible assets and other assets 4,972 5,284 Deferred tax assets 1,713 1,518 Total non-current assets 25,725 24,722 Current assets Inventories 8,255 8,418
Slide 54: Balance Sheet: Liabilities and Shareholder’s Equity
Balance Sheet: Liabilities and Shareholder’s Equity Liabilities and shareholders’ equity 30/06/2024 30/06/2025 (€ millions) Group Shareholders’ equity 15,749 15,212 Non-controlling interests 1,048 1,014 of which profit attributable to non-controlling interests 38 48 Total Shareholders’ equity 16,797
Slide 55: Analysis of Working Capital Requirement
Analysis of Working Capital Requirement June June (€ millions) FY24 WC change* FY25 WC change* 2024 2025 Aged work in progress 6,616 7,062 620 502 Advances to suppliers for wine and ageing spirits 20 16 9 (5) Payables on wine and ageing spirits (163) (122) 11 41 Net aged work in progress 6,474 6,956
Slide 56: Net Debt
Net Debt 30/06/2024 30/06/2025 (€ millions) Current Non-current Total Current Non-current Total Bonds 1,778 10,907 12,685 1,241 10,339 11,579 Commercial paper 196 - 196 379 - 379 Other loans and long-term debts 156 133 288 99 96 195 Other financial liabilities 352 133 485 478 96 574 Gross Financial
Slide 57: Change in Net Debt
Change in Net Debt (€ millions) 30/06/2024 30/06/2025 Operating profit 2,724 2,743 Depreciation and amortisation 441 422 Net change in impairment of goodwill, PPE and intangible assets 495 52 Net change in provisions (37) (42) Changes in fair value on commercial derivatives and biological assets 1 (
Slide 58: Net Debt Maturity profile as of 30 June 2025
Net Debt Maturity profile as of 30 June 2025 0.2 €bn 0.4 1.6 1.6 1.5 1.5 1.4 1.3 1.1 0.7 0.5 0.4 0.0 0.0 25/ 26 27/ 28 28/ 29 29/ 30 30/ 31 31/ 32 32/ 33 33/ 34 … 41/ 42 … 50/ 51 -1.8 Bonds Commercial paper Cash Ot her debt s 58
Slide 59: Bond Details
Bond Details Currency Par value Coupon Issue date Maturity date € 600 m 1.500% 17/05/2016 18/05/2026 € 1,000 m o/w : € 500 m 0.500% 24/10/2027 24/10/2019 € 500 m 0.875% 24/10/2031 € 1,000 m 1.750% 06/04/2020 08/04/2030 € 500 m 0.125% 04/10/2021 04/10/2029 € 750 m 1.375% 07/04/2022 07/04/2029 € 1,100
Slide 60: Net debt / EBITDA evolution
Net debt / EBITDA evolution Closing rate Average rate(1) EUR/USD rate Jun FY24 -> Jun FY25 1.07 -> 1.17 1.08 -> 1.09 Ratio at 30/06/2024 3.1 3.1 EBITDA & cash generation excl. Group structure effect 0.0 0.0 and forex impacts Group structure and forex impacts 0.1 0.2 Ratio at 30/06/2025 3.2 3.3 (1) L
Slide 61: Net Diluted EPS
Net Diluted EPS (x 1,000) FY24 FY25 Number of shares in issue at end of period 253,329 252,269 Weighted average number of shares in issue (pro rata temporis) 255,570 252,770 Weighted average number of treasury shares (pro rata temporis) -2,974 -1,255 Dilutive impact of stock options and performance