- Pernod Ricard’s organic sales in the fourth quarter matched estimates at 0% growth, avoiding the expected decline of -0.84%.
- The Americas region faced a decline in organic sales at -5%, worse than the estimated decline of -4.23%.
- Asia and the Rest of the World saw a positive organic sales growth of +2%, significantly beating the estimated +0.05% growth.
- Europe experienced a solid organic sales increase of +2%, surpassing the expected +0.85% growth.
- Forex impact was more negative than anticipated, at -5% versus an estimate of -3.66%.
- Total sales amounted to EUR 2.51 billion, matching estimates but showing a year-over-year decline of -5.8%.
- The Americas region reported sales of EUR 665 million, down -13% year-over-year, below the estimate of EUR 683.9 million.
- Sales in Asia and the Rest of the World remained steady at EUR 1.05 billion, experiencing a -4.8% year-over-year decline as expected.
- European sales were slightly down at EUR 786 million, a -0.4% year-over-year decline but above the estimate of EUR 779.2 million.
- Recurring operating income was reported at EUR 2.95 billion, slightly higher than the EUR 2.91 billion estimate but down -5.3% year-over-year.
- Organic growth in profit from recurring operations declined by -0.8%, improving on the estimated -2.73% drop.
- Full-year sales reached EUR 10.96 billion, falling short of the EUR 11.04 billion estimate and declining -5.5% year-over-year.
- Advertising and promotional expenses were reduced by -10% year-over-year to EUR 1.68 billion, below the estimate of EUR 1.72 billion.
- Recurring net income decreased by -8.6% year-over-year to EUR 1.83 billion, slightly above the EUR 1.79 billion estimate.
- Net income experienced a significant increase of +10% year-over-year, amounting to EUR 1.63 billion, missing the estimate of EUR 1.69 billion.
- Dividend per share remained steady at EUR 4.70, in line with estimates.
- Free cash flow increased by +18% year-over-year to EUR 1.13 billion, exceeding the estimate of EUR 1.06 billion.
- Net debt decreased by -2% year-over-year to EUR 10.73 billion, slightly better than the estimate of EUR 10.77 billion.
- FY26 is projected as a transition year with improving trends in Organic Net Sales, particularly in the second half.
- A decline is anticipated in Q1 FY26 due to distributor inventory adjustments in the US, soft consumer demand and inventory adjustments in China, and changes in excise policy in Maharashtra, India affecting Q1.
- Cognac sales in Duty-Free China are expected to resume from Q2 FY26.
- Cash conversion is expected to improve compared to FY25 despite a significantly negative FX impact.
- The medium-term forecast for FY27-FY29 projects organic net sales growth ranging from +3% to +6% per annum on average.
Pernod Ricard Sa on Smartkarma
Analyst coverage of Pernod Ricard SA on Smartkarma reveals insights from Baptista Research. In their report titled “Pernod Ricard- An Insight Into The Various Macro-Economic Factors,” analysts highlighted a performance divide across different markets. While mature and emerging markets showed strength, the United States experienced a slower recovery and China displayed weaker results. Pernod Ricard’s fiscal year 2024 performance showed stability with a slight decline in organic net sales. Excluding the exit from Russia, there would have been a 1% increase. The report delves into the challenges faced by the company and its strategic responses, providing a comprehensive overview of the company’s recent financial performance.
A look at Pernod Ricard Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Pernod Ricard SA seems to have a positive long-term outlook. The company scored well in areas such as Dividend and Resilience, indicating strong performance in these areas. Pernod Ricard is known for producing wines and spirits globally, showcasing a diverse portfolio of products across various categories.
While there is room for improvement in terms of Value, Growth, and Momentum scores, the overall outlook for Pernod Ricard appears stable with notable strengths in Dividend payouts and Resilience, which could attract long-term investors looking for consistent returns in the wines and spirits sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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