• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Pernod Ricard shares climb as sales, profit beat forecasts: will the rally sustain?

by August 28, 2025
by August 28, 2025

Shares in French spirits group Pernod Ricard rose by more than 5.7% on Thursday after the company reported a smaller-than-expected fall in annual sales and profit, while offering guidance that pointed to improving trends in the latter half of fiscal 2026.

The performance was received positively by investors, who had braced for a deeper slowdown amid weak demand in key markets.

Tariff impact revised lower to €80 million annually

The company said it now expects tariffs imposed by the United States and China to cost around 80 million euros ($93.7 million) each year, down from an earlier estimate of 200 million euros.

Chief Executive Alexandre Ricard told Reuters that the group, nonetheless, expects fiscal 2026 to deliver an improvement over 2025, although it is too early to quantify the extent of the recovery.

“We will do better for the year than this year,” Ricard said.

The outlook emerges as the French distiller continues to navigate trade disputes, particularly between China and the European Union, while also adapting to new tariff announcements from the United States.

Full-year results slightly ahead of expectations

For the year ended June 30, Pernod Ricard reported sales of 10.96 billion euros, a 3% organic decline.

The figure was marginally better than the 3.2% drop analysts had forecast in company-compiled consensus and in line with its guidance for a low single-digit decline.

Profit from recurring operations fell 5.3% to 2.95 billion euros, reflecting weaker volumes and tariff pressures, while net profit rose 11% to 1.67 billion euros on reduced costs.

The board proposed an unchanged dividend of 4.70 euros per share.

Transition year ahead with a weak start expected

The group, maker of Absolut vodka, Jameson whiskey, Martell cognac and Havana Club rum, warned that fiscal 2026 would be a transition year.

Management forecasts a soft first quarter, driven by continued destocking in the United States and subdued consumer demand in China, but expects momentum to pick up in the second half.

Like its peers, Pernod Ricard has been hit by a downturn in spirits consumption following a post-pandemic surge.

Analysts note that the operating environment remains tough, particularly in the US and China, the company’s two largest markets.

Will the share price rally sustain? Analysts weigh in

Citi analysts described the outlook for organic sales growth in fiscal 2026 as slightly better than market expectations, noting that investors should take comfort from the earnings beat and strong free cash flow.

“We expect the shares to trade higher,” Citi’s Simon Hales wrote in a research note.

JP Morgan analysts said the results offered a mixed picture, combining a welcome earnings beat with a much weaker set-up into the first half of fiscal 2026.

They, however, cautioned that Thursday’s rally may be difficult to sustain after a strong run since late June.

“The share price is already discounting a muted pace of recovery in F26, as confidence in recovery increases, we expect the shares to re-rate,” Jefferies analyst Edward Mundy and associate Sebastian Hickman wrote in a research note. 

They added that the company is doubling down on cost-cutting efforts, which helped it beat earnings expectations, noting this should support the share price.

RBC Capital Markets offered a more guarded assessment, highlighting management’s ambiguous pledge to defend operating margins “to the fullest extent possible.”

The brokerage suggested that this could imply a decline in profitability in the near term.

Shares rally, but challenges remain

The Paris-listed stock has risen about 23% since late June and is up roughly 5% for the year to date.

Thursday’s jump reflected investor relief that full-year results were slightly ahead of forecasts, and that the tariff hit was smaller than initially feared.

Still, analysts warned that headwinds from weak US and Chinese demand, along with ongoing trade disputes, could weigh on performance in the near term.

Management maintained that the company is positioned for a gradual recovery, with improving sales momentum expected to emerge in the second half of the fiscal year.

The post Pernod Ricard shares climb as sales, profit beat forecasts: will the rally sustain? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Tesla sales in Europe fall 40% as BYD registrations surge 225%
next post
Sotheby’s to launch first Abu Dhabi auction with $30M luxury assets

Related Posts

Asian markets open: Nikkei hits another record high,...

October 7, 2025

Top reasons why the Topix and Nikkei 225...

October 7, 2025

Goldman Sachs boosts 2026 gold price forecast to...

October 7, 2025

Beijing intensifies oil stockpiling amid global supply and...

October 7, 2025

Trump’s new 25% truck tariff targets imports from...

October 7, 2025

CAC 40 Index outlook: Understanding the decline and...

October 7, 2025

DAX Index analysis: Why German stocks are rising...

October 7, 2025

Europe markets open: Stoxx 600 flat, CAC 40...

October 7, 2025

LG India’s $1.3B share sale highlights record IPO...

October 7, 2025

Trilogy Metals shares soar over 200% as White...

October 7, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The OECD’s Warning to America: Economic Growth Is Slipping

    October 7, 2025
  • Semiconductor Giants with Tech-Industrial Ambitions

    October 7, 2025
  • Will Bitcoin Strengthen or Weaken US Dollar Dominance?

    October 7, 2025
  • Asian markets open: Nikkei hits another record high, Sensex up 140 pts

    October 7, 2025
  • Top reasons why the Topix and Nikkei 225 indices are soaring

    October 7, 2025
  • Goldman Sachs boosts 2026 gold price forecast to $4,900 amid strong demand

    October 7, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,804)
  • Editor's Pick (280)
  • Investing (185)
  • Stock (1,914)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Asian markets open: Nikkei tumbles 1.4%, Sensex...

August 14, 2025

Foxconn recalls more Chinese engineers from India...

August 24, 2025

Regeneron stock crashes on COPD data: here’s...

May 31, 2025