Third Quarter FY25 Sales and Results

We report a resilient Net Sales performance in a global macroeconomic and geopolitical environment which remains challenging and very fluid with regards to tariffs. The quarterly sales are impacted by some phasing technicalities that will reverse in Q4: namely in India, the impact of new customs clearance procedures and temporary production interruption in one major state, which is now resolved; in Global Travel Retail, a very high comparison base; and in some markets, the impact of the later Easter.

Our balanced and broad-based geographic breadth and our diversified portfolio remain key in mitigating some of the impacts caused by the challenging environment. As previously indicated, we are continuously adapting our resources with agility, deploying our operational efficiencies and steering the organisation to fuel our future growth and optimizing our cash generation.

FY25 Q3 Net Sales €2,278m an organic decline of -3%, and -3% reported
FY25 9M Net Sales €8,454m, an organic decline of -4% and -5% reported, with unfavourable Foreign Exchange impact of -€145m, and a favourable Group Structure of +€3m
9M Volumes grew by +1%, while price/mix effect declined by -5% driven by a strongly negative market mix

• By regions, (Q3/YTD)
  •    Americas +3% / -2%,
       o  USA +2% / -5%,

              -    The US Spirits market remains broadly stable
              -    Q3 Organic Net Sales are ahead of sell-out supported by wholesalers’ orders ahead of tariff announcements
              -    Our ongoing focus on execution is illustrated by a steadily improving Sell-Out gap to market, on both volume and value 
              -    Improving performances on Jameson, Absolut, notably boosted by the success of Absolut Ocean Spray RTD and Kahlua
              -    Successful innovation launches notably within the Jameson, Absolut and Kahlua brand families 

          o    Canada: strong growth YTD, driven by Bumbu, Absolut and Jameson 
          o    Brazil: continued solid momentum in Q3, with growth for Ballantine’s, Absolut and Chivas Regal

      •    Europe -7% / -3%, 
          o    France solid growth YTD, driven by Ballantine’s
          o    Spain soft performance, impacted by the later Easter timing
          o    Germany declines in an ongoing challenged macroeconomic context and lapping a high comparable basis
          o    Poland broadly stable YTD

     •    Asia-RoW -6% / -6%,
          o    India +1% / +5%,
                -    Dynamic growth YTD with strong underlying market demand and continuing premiumisation trends
                -    A softer Q3 sales impacted by phasing technicalities, due in part to the implementation of new customs clearance procedures affecting sales of imported Spirits, and a temporary production interruption in a major state which is now resolved 
                -    Ongoing strong growth of Jameson, and good performance of Ballantine’s and Royal Salute 
                -    Good growth on Seagram’s whiskies, notably Royal Stag 
                -    Strong momentum expected in Q4, including catch-up from Q3
         o    China -5% / -22%,
                -    Macro context remains challenging
                -    Sharp decline on Martell, very strong ongoing growth on Absolut, Olmeca and Jameson 
                -    As expected, CNY was very soft
                -    Q3 sales benefitted from cycling a favourable comparison basis
                -    Price increase of mid-single-digit for Martell was taken in February
         o    Japan strong momentum YTD, with Perrier-Jouet in double-digit growth 
         o    Korea continuing weakness in an environment of political disruption 

     •    Global Travel Retail -31% / -17%,
         o    As expected, sharp decline driven by suspension of the duty-free regime on Cognac in China Travel Retail, compounded with a high comparison basis in Q3
         o    Continued growth in Europe, the Americas continue to enjoy good travellers’ numbers and growth from cruises

By brands:
     •    Strategic International Brands -4% / -6%, YTD good growth for Jameson, Chivas Regal, Ballantine’s and Absolut, declines on Martell and Royal Salute
     •    Strategic Local Brands -5% / flat, solid growth for Seagram’s whiskies, Olmeca and Kahlua 
     •    Specialty Brands -8% / -6%, double-digit growth of Bumbu, good growth on Skrewball, soft performance for Aberlour

FY25 Outlook
In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in Organic Net Sales while sustaining our Organic Operating Margin, supported by our program of continuous operational efficiencies. This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today. 
A&P will be maintained at c.16% of Net Sales and strict discipline applied to structure costs. 
Maximizing cash generation remains a core focus for the group.
Negative FX impact on PRO for the full year is expected to be broadly similar to H1 .

Dividend
An interim dividend of    €2.35 per share will be detached on 23rd July 2025 and paid on 25th July 2025. The final dividend will be subject to the AGM decision on 27th October 2025.

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. 
Organic Growth for named markets excludes Travel Retail.

This press release is also available 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
-    Organic growth is calculated after excluding the impacts of exchange rate movements, acquisitions and disposals, changes in applicable accounting principles and hyperinflation.
-    Exchange rates impact is calculated by translating the current year results at the prior year’s exchange rates and adding the year-on-year variance in the reported transaction impact between the current year and the previous year.
-    For acquisitions in the current year, the post-acquisition results are excluded from the organic movement calculations. For acquisitions in the prior year, post-acquisition results are included in the prior year but are included in the organic movement calculations of the current year only from the anniversary date of the acquisition.
-    The impact of hyperinflation on Profit from Recurring Operations in Turkey and Argentina is excluded from organic growth calculations by capping local unit price/cost increases to a maximum of +26% per year, equivalent to +100% over three years.
-    Where a business, brand, brand distribution right or agency agreement was disposed of or terminated in the prior year, the Group excludes the results for that business from the prior year in the organic movement calculations. For disposals or terminations in the current year, the Group excludes the results for that business from the prior year from the date of the disposal or termination.
-    This measure enables users to compare the Group’s performance on a like-for-like basis, focusing on areas that local management is most directly able to influence.

Profit from recurring operations
Profit from recurring operations corresponds to the operating profit excluding other non-recurring operating income and expenses.
 

[1] Based on EUR/USD average rate at 1.09 (with April 11th spot rate at 1.13)