Pernod Ricard: Steering Through a Challenging Environment With Agility, Discipline and Strategic Conviction

About this update from Pernod Ricard Sa

FY25 Organic Sales -3.0% (-5.5% reported) FY25 Organic PRO 1 -0.8% (-5.3% reported) PARIS, August 28, 2025 --( BUSINESS WIRE )--Regulatory News: Pernod Ricard (Paris:RI): Press Release – Paris, 28 th August 2025 Consistent organic operating margin expansion, investing in brand desirability and sustainable long-term growth SALES FY25 Net Sales totalled €10,959m , an organic decline of -3.0% (-5.5% reported), with a negative FX impact of -€277m mainly due to the Turkish Lira, Argentinean Peso and Indian Rupee. By region: By brand: RESULTS FY25 Profit from Recurring Operations €2,951m , an organic decline of -0.8%, a reported decline of -5.3% Group share of Net Profit from Recurring Operations €1,829m, down -9%. Increased Recurring Financial Expenses with an average cost of debt of 3.2%, while Income Tax on Recurring Operations declined in line with the reduction in Profit from Recurring Operations. Group Share of Net Profit €1,626m, up by +10% as non-recurring costs are significantly lower than FY24. Non-recurring costs mainly due to restructuring, lapping last year’s Wine business impairment and the reversal on Kahlúa impairment. Earnings Per Share in decline of -8% at €7.26, mainly due to unfavourable FX and higher financial expenses. FREE CASH FLOW AND DEBT Free Cash Flow at €1,133m , +€170m vs FY24, driven by improved Operating Working Capital notably with improvement in finished goods inventory. Decrease in strategic inventories investments and Capex following peak levels reached in FY24, though with continued investment to secure long term growth. For FY26, Strategic investments are expected to be below €900m. Net debt down -€224m vs. 30 June 2024 to €10,727m, thanks to improved FCF and positive FX impact from the USD weakening. The Net Debt/EBITDA ratio at average rate 5 increased to 3.3x, largely due to negative FX impact on Profit from Recurring Operations. A dividend is proposed of €4.70 per share flat vs FY24, subject to shareholder approval at the Annual General Meeting on 27 th October 2025. REMINDER OF STRATEGIC INTENT 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 changes in India, skewed toward Q1 and sales of Cognac in Duty Free China only resuming from Q2 We continue to invest to increase our brands’ desirability with sharp allocation, efficiency, innovation and experiences with A&P investment ratio expected to remain at c.16% We will defend our organic operating margin to the fullest extent possible, supported by strict cost control and the implementation of our efficiency initiatives Focus on cash generation to continue, with strategic investments below €900m and strong operating working capital management. Cash conversion expected to improve further vs FY25 FX impact expected to be significantly negative 6 MEDIUM TERM 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.a on average, with annual Organic Operating Margin expansion Anticipating organic margin expansion to be supported by efficiencies of €1bn from FY26 to FY29, with program to optimize Operations and implement a fit for future organisational structure Maintaining consistent investments behind our brands with c.16% A&P/NS, with agility and responsiveness to maximise opportunity by brand and market Strong cash generation aiming for c.80% and above cash conversion to fund our financial policy priorities, with strategic investments normalizing to no more than c. €1bn We are confident in our strategy, in our operating model and in the engagement of our teams, to deliver sustainable value growth over time All growth data specified in this press release refers to organic growth (at constant FX and Group structure), unless otherwise stated. Data may be subject to rounding. A detailed presentation of FY25 Sales & Results can be downloaded from our website: www.pernod-ricard.com Audit procedures have been carried out on the financial statements. The Statutory Auditors’ report will be issued after examination of the management report and completion of procedures required for the filing of the Universal registration document. 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 financial statements in understanding the Group’s performance. These non-IFRS measures should be considered as complementary to the comparable IFRS measures and reported movements therein. Organic growth Profit from recurring operations ​Profit from recurring operations corresponds to the operating profit excluding other non-recurring operating income and expenses. About Pernod Ricard Pernod Ricard is a worldwide leader in the spirits and wine industry, blending traditional craftsmanship, state-of-the-art brand-building, and global distribution technologies. Our prestigious portfolio of premium to luxury brands includes Absolut vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and Mumm and Perrier-Jouët champagnes. Our mission is to ensure the long-term development of our brands with full respect for people and the environment, while empowering our employees around the world to be ambassadors of our purposeful, inclusive and responsible culture of authentic conviviality. Pernod Ricard’s consolidated sales amounted to €10,959 million in fiscal year FY25. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code:FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices. Appendices Financial Tables can be consulted on www.pernod-ricard.com Upcoming Communications   View source version on businesswire.com: https://www.businesswire.com/news/home/20250827651602/en/ Contacts Florence Tresarrieu / Global SVP Investor Relations and Treasury +33 (0) 1 70 93 17 03 Edward Mayle / Investor Relations Director +33 (0) 6 76 85 00 45 Ines Lo Franco / Investor Relations Manager +33 (0) 6 49 10 33 54 Emmanuel Vouin / Head of External Engagement +33 (0) 1 70 93 16 34

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