Business
Steering With Agility, Discipline and Strategic Conviction, in a Transition Year
PARIS, February 19, 2026--Press Release – Paris, 19 February 2026
About this update from Pernod Ricard Sa
H1 Fy26 Organic Sales Decline -5.9% (-14.9% Reported) H1 FY26 Organic PRO 1 decline -7.5% (-18.7% reported) PARIS, February 19, 2026 --( BUSINESS WIRE )--Press Release – Paris, 19 February 2026 Alexandre Ricard, Chairman and Chief Executive Officer, stated: "Our priorities are clear: to strengthen the desirability of our brands as a foundation of long-term, sustainable growth; to drive greater efficiency across the organization; and to enhance cash generation. Our balanced geographical footprint, diversified portfolio and highly engaged teams put us in a unique position to navigate a contrasted environment and seize opportunities. We remain fully committed to adapting with agility and executing with discipline to meet evolving consumer needs and capture growth. Building on the journey we began in 2023, we have made significant progress on our FY26-29 €1 billion Operational Efficiencies program, including the rollout of our Fit for Future operating model. One third of the targeted efficiencies will be delivered this year and we have accelerated the normalization of our strategic investments. I remain confident in the attractive fundamentals of our industry, Pernod Ricard’s strategy and the resilience of our operating model to deliver sustainable value over time." SALES Sales for H1 FY26 totaled €5,253m , an organic decline of -5.9% and -14.9% reported, with a negative Foreign Exchange impact of -€356m mainly linked to US dollar, Indian Rupee, Turkish Lira, and a negative Perimeter of -€217m mainly due to brand disposals. By region: By brand: RESULTS H1 FY26 PRO reached €1,614m, an organic decline of -7.5%, a reported decline of -18.7% Group share of Net PRO was €1,018m, down -20%. Optimization of financing costs leading to decrease in Recurring Financial Expenses, with an average cost of debt reduced to 3.2% (from 3.4%). Reduced Income Tax on Recurring Operations, in line with the reduction in PRO. Group Share of Net Profit is €975m, down -18%. Non-Recurring Operating Expenses include costs of Group restructuring, and disposals’ proceeds and impairments. Earnings Per Share in decline of -20% to €4.04, reflecting lower Group Share of Net Profit from Recurring Operations and unfavourable FX. FREE CASH FLOW AND DEBT Free Cash Flow at €482m, +€42m (+9.5%) vs H1 FY25, driven by optimized strategic investments and strong operating working capital management, leading to an improvement in Cash conversion. Net debt decrease on 12 months to December, by c.-€900m to €11,168m with H1 increase vs June 2025 +€441m. The Net Debt/EBITDA ratio at average rate 4 stands at 3.8x at 31 December 2025, reflecting the impact of lower EBITDA (including FX), and timing of dividend payments. Actively focusing on cash generation to preserve a strong balance sheet, with Strategic investments normalizing, reducing from peak levels, ongoing operating working capital improvement initiatives, as the PRO returns to growth, and with dynamic portfolio management. FY26 Outlook In a context that remains volatile and uncertain, we remain focused on capturing growth opportunities, and as such, we continue to expect FY26 to be a transition year with improving trends in Organic Net Sales, skewed toward H2 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 FY26 to FY29 €1bn Operational Efficiencies program, including the adaptation of our "fit for future" organisation Focus on cash generation to continue, with strategic investments now revised to c.€750m and strong operating working capital management Aiming for c.80% and above cash conversion from FY26 FX impact expected to be significantly negative 5 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 6 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/Net Sales, 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.€800m p.a 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 H1 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. 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 index. Appendices Financial Tables can be consulted on www.pernod-ricard.com Upcoming Communications Login details for the conference-call on February 19, 2026 Available in the media section of the Pernod Ricard website View source version on businesswire.com: https://www.businesswire.com/news/home/20260218343366/en/ Contacts Joelle Ferran / Global VP, Investors 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