Q3 2025 Pernod Ricard SA Corporate Sales Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrea Pistacchi - Bank of America - Analyst : Good morning, Helene, Florence. Two questions, please. The first one is on Europe. Europe was a bit softer than most were expecting, I think, in Q3. So could you give a bit more perspective on what drove the deterioration? You called out Easter phasing, which is clearly a factor, but what is also an underlying factor? What geographies are performing better? Which ones look more challenging? The second question, please, is on the US. I was wondering whether you're able to quantify the impact of the shipment phasing ahead of tariffs. Will this phasing effect unwind in Q4? And considering the level of stocks that you have in the US now either with distributors or USA, when should we start to see an impact from the tariff on your P&L, assuming the current situation of 10% is confirmed, will the impact be delayed into the next fiscal? Thank you.

Question: Andrea Pistacchi - Bank of America - Analyst : Thanks. Just to clarify here, Q4, then you should be still quite shielded from the impact of the tariff, right? Not a material impact in the US.

Question: Gen Cross - BNP Paribas Exane - Analyst : Good morning, everyone. Thank you for the questions. You called out a number of technical phasing impacts in Q3 that you expect to reverse in Q4. I just wonder if you comment with these in mind, would you expect to return directionally positive group organic sales growth in Q4? And then I know that there wasn't any comment on FY26, I think it's probably quite typical with the Q3 trading update, but can you just reiterate that your expectations with respect to an improvement in organic sales growth next year hasn't changed. Thank you.

Question: Edward Mundy - Jefferies - Analyst : Morning, Helene. Two questions, please. First is on India, clearly some phasing impacts within the third quarter, can you perhaps [add some detail](corrected by company after the call) on what's going on within India and a degree of comfort that as we look into Q4 and fiscal '26. It's a much cleaner outlook and probably more in line with underlying trends. And then the second question is just perhaps a quick lap of the world in terms of inventories. We've touched a little bit around the US given some of the volatility there from a tariff standpoint, but perhaps you could talk about inventories around the world, where may they be heavy? Where are they looking to normalized? And how you're thinking about the overall health inventories if we are going into a potentially slower macro environment.

Question: Trevor Stirling - Bernstein - Analyst : Hi, Helene. Just one from me, Helene. So you're getting better as they go on. The US sell-outT gap, Helene, so just double checking if the market is flat in you are at minus 5%, that's a 5 percentage point gap. When I look at some of the public data, it looks like you're closer than that. Just wondering if there's anything else going on and maybe some substance on how quickly that gap is being closed. That would be great. Thank you.

Question: Simon Hales - Citi - Analyst : Thank you. Morning, Helene, Morning, Florence. Helene, can I just clarify your comments around the underlying performance in Q3 if we exclude the US stock build, the Easter phasing, the India issues. I think you said it would have been down minus 2%. So of 100 bps better than the headline you reported this morning, if that's correct? As we head into Q4, I'm just trying to understand how we get back into positive growth given that I think the comps in China are tougher, now we won't be seeing such as the stock build again in the US in Q4. I'm just wondering what the moving part is of which markets to really move forward in Q4 significantly to get into positive to appreciate India will improve. But where else could be better? And then secondly, I wonder if you could just talk a little bit about the Asian duty-free situation at the moment. Are you still not able to ship into that trade channel?

Question: Olivier Nicolai - Goldman Sachs - Analyst : Hi. Good morning, Helene and Florence. Just regarding the US, you mentioned good growth in Skrewball for the first time, I think, since you bought the brand. I remember you had some distribution issues in the past post the acquisition. Has it been resolved now? Do you see that growth as sustainable? And similarly, just to stay on the US regarding Jameson, would you be able to comment on St.Patrick's Day performance, although I will understand if we have to wait mid-May for the update from Cognac.

Question: Chris Pitcher - Redburn Atlantic - Analyst : Thank you very much, Helene, Florence, A quick follow-up on the US. You mentioned that you're putting through the pricing adjustments and some promotional activity. At the group level, you talked about sustaining operating margin has been given the leeway to actually invest margin in the US but the rest of the group covering this? And then a clarification, apologies if I've missed it, but in terms of the completion of the wine sale, is that still on track for the end of the fiscal year? Thanks.