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

About this update from Pernod Ricard Sa

FY26 Organic Sales -3.9% (-14.2% reported) FY26 Organic PRO -5.2% (-17.9% reported) PARIS, August 27, 2026 --( BUSINESS WIRE )--Regulatory News: Pernod Ricard (Paris:RI): Press Release – Paris, 27th August 2026 Disciplined execution defending margin, delivering efficiencies and strengthening cash generation SALES FY26 Net Sales totalled €9,404m, an organic decline of -3.9% (-14.2% reported), with a negative FX impact mainly due to the US Dollar, Indian Rupee and Turkish Lira, and a negative perimeter impact mainly from brand disposals. By region: By brand: RESULTS FY26 Profit from Recurring Operations totalled €2,423m, an organic decline of -5.2% and a reported decline of -17.9%. Group share of Net Profit from Recurring Operations was €1,476m, down -19%. Optimised finance costs led to a decrease in Recurring Financial Expenses, with an average cost of debt of 3.4%, while Income Tax on Recurring Operations declined in line with the reduction in Profit from Recurring Operations. Group Share of Net Profit was €1,203m, down -26%, with higher non-recurring costs, primarily due to restructuring charges. Earnings Per Share in decline of -19% to €5.85. FREE CASH FLOW AND DEBT Free Cash Flow at €1,197m, +6% vs FY25, driven by materially improved cash conversion of 91%, up +17pts. Operating Working Capital benefited from lower trade receivables and finished goods inventories, partly offset by lower payables. Optimisation of strategic inventories investment and Capex at €616m, significantly reduced from recent peak levels. Net debt decreased by -€65m versus 30 June 2025 to €10,662m, supported by improved Free Cash Flow and a positive contribution from M&A. The Net Debt/EBITDA ratio at average rate increased to 3.7x, mainly reflecting the decline in Profit from Recurring Operations. A dividend of €4.70 per share is proposed, stable versus FY25, subject to shareholder approval at the Annual General Meeting on 20 November 2026. Shareholders will be offered the option to receive the FY26 final dividend of €2.35 either in cash or shares. FINANCIAL POLICY Our financial policy balances the deployment of capital for profitable growth and the return of capital to shareholders. While maintaining investment grade rating: FY27 OUTLOOK We are expecting organic Net Sales broadly stable for the full year, in a contrasted and uncertain environment, with: A&P/Net Sales investment will be maintained at c.16%. We will strongly defend Organic Operating Margin supported by strict cost control and accelerating the implementation of our Operational Efficiency initiatives whilst investing in digital transformation. We expect strategic investments at c.€700m, strong operating working capital management, with cash conversion expected to continue at c.90%. MEDIUM TERM FY27-29 Noting the current softness in the US market, we are projecting Organic Net Sales growth, aiming to be, on average, close to the lower end of the +3% to +6% range over FY27 to FY29. We expect Organic Operating Margin expansion, supported by accelerated operational efficiencies of €1bn from FY26 to FY28, while maintaining consistent investments behind our brands with c.16% A&P/Net Sales. We expect strengthened cash generation, aiming for c.90% cash conversion to fund our financial policy priorities, with strategic investments normalizing to no more than c. €700m. We are targeting Net Debt / EBITDA ratio below 3x by FY29. We are adapting our strategy to capture growth opportunities, and our operating model to meet changing circumstances including through our ongoing digital transformation to unlock further efficiencies. We are confident in the continued engagement of our teams and we remain focused 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. 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. A detailed presentation of our FY26 Sales & Results can be downloaded from our website: www.pernod-ricard.com 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. Cash Conversion Cash conversion is calculated by dividing the Recurring Operating Cash Flow by the Profit from recurring operations. The Recurring Operating Cash Flow is calculated as the Self-financing capacity from Recurring Operations + Change in Recurring Operating Working Capital needs, Change in Strategic inventories and Cash Capex. Net Debt / EBITDA Net debt corresponds to gross financial debt, including IFRS 16 lease liabilities, less cash and cash equivalents. EBITDA corresponds to Profit from recurring operations excluding depreciation, and amortisation on fixed assets. The Net Debt / EBITDA ratio is calculated using EBITDA on a last‑twelve‑months basis and using Net Debt translated at last‑twelve‑months average exchange rates. Strategic Investments Strategic (ageing) Inventories plus Capex About Pernod Ricard Pernod Ricard is a worldwide leader in the spirits and champagne 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 €9,404 million in FY26. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 index. 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/20260826946115/en/ Contacts Joelle Ferran / Global VP, Investor Relations & Financial Communication +33 (0) 1 70 93 25 37 Edward Mayle / Investor Relations Director +33 (0) 6 76 85 00 45 Ines Lo Franco / Investor Relations Manager +33 (0) 1 70 93 17 13 Emmanuel Vouin / Head of External Engagement +33 (0) 1 70 93 16 34

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