Pernod finds some lift as deal picture tightens

Weak U.S., China sales and crowded Brown-Forman chase still loom over year

11:47 a.m. April 16, 2026

DUANE CROSS
MCO Publisher•Editor

Pernod Ricard’s third quarter was better than its bruising first half, but not enough to change the year.

Third-quarter sales were essentially flat organically, but volumes grew again, several markets improved, and talks with Brown-Forman are still alive. Even so, Pernod Ricard lowered its full-year outlook as it tries to pull out of a shaky stretch.

Pernod Ricard on Thursday reported third-quarter net sales of about $2.3 billion and nine-month sales of about $8.5 billion. On an organic basis, third-quarter sales edged up 0.1%, while nine-month sales were down 4.4%. Currency swings and business disposals made the reported numbers look worse. The dollar figures are approximate, based on the European Central Bank’s April 16 exchange rate.

Deal Talks Stay in Play

The quarter was better than the first half. Group volumes rose 4%, and Pernod Ricard said sales improved across all regions. Excluding the United States and China, the rest of the world posted 5% organic sales growth.

That matters because Pernod Ricard is trying to steady the business while still chasing a potentially game-changing deal.

The company confirmed in March that it was in talks with Brown-Forman about what it called a deal “akin to a merger of equals.” Reuters reported Thursday that Pernod Ricard’s finance chief said those talks are still going.

That picture got more crowded this week. Reuters reported that Sazerac has made a roughly $15 billion bid for Brown-Forman, further complicating any potential tie-up.

Weakness in the U.S., Strength in India

Back in Pernod Ricard’s core business, the weak spots were familiar.

The Americas remained the softest region, with organic sales down 8% in the quarter and 10% for the year to date. In the U.S., sales fell 12% in the quarter and 14% over the first nine months. Pernod Ricard said the U.S. improved somewhat late in the quarter after a soft holiday season, with bars and restaurants outperforming retail. Canada posted double-digit growth in the quarter, and Brazil returned to growth after pressure tied to that country’s methanol crisis eased.

Asia and the rest of the world were stronger overall. The region posted 6% organic growth in the quarter, led by India, where sales rose 11% on strong demand and consumers continuing to trade up. China remained a drag, though, with sales down 7% in the quarter and 24% for the year to date as weak consumer confidence and tighter regulation continued to weigh on demand.

Travel Retail Helps, but Risks Remain

Europe also edged back into growth, up 1% in the quarter. Global Travel Retail rose 11%, helped by strong traveler numbers and the return of cognac sales in China, duty-free. But Pernod Ricard said disruption tied to the conflict in the Middle East is now expected to weigh on full-year sales, especially in travel retail. Reuters and RTE both reported that the company now expects full-year organic net sales to decline 3% to 4%.

Some of the brighter numbers came from inside the portfolio. Strategic International Brands rose 2% in the quarter, helped by Ballantine’s, Royal Salute, and Malibu. Strategic Local Brands gained 1%. Ready-to-drink products remained one of the clearest growth drivers, jumping 26% in the quarter and 16% for the year to date. Specialty Brands fell 9% in the quarter.

Still Calling 2026 a Transition Year

Pernod Ricard is still calling 2026 a transition year. The company said it plans to keep investing in brand building while pushing cost controls and a roughly $1.2 billion efficiency program running from fiscal 2026 through 2029. It expects about one-third of that program to be delivered by the end of the current fiscal year. Strategic investments this year are now expected to come in below about $825 million.

It also announced an interim dividend of about $2.77 per share, to be detached on July 22 and paid on July 24.

For now, Pernod Ricard is trying to steady the business while the Brown-Forman picture gets more crowded.