Pernod Ricard has reported a return to volume growth in its third quarter of fiscal year 2026, with group volumes up +4% in Q3, as improving momentum across most markets offsets continued weakness in the US and China.
Organic net sales for Q3 came in at +0.1% on net sales of €1,945m. Excluding the US and China, which contracted -12% and -7% respectively in the quarter, Q3 organic net sales in the rest of the world grew +5%.
The nine-month picture remains in overall decline with organic net sales down -4.4% year to date, on net sales of €7,199m. On a reported basis, which includes the impact of currency movements and the disposal of the Wines and Imperial Blue businesses, the nine-month decline is -14.8%.
The US remains the most significant drag, down -12% in Q3 and -14% year to date. China is down -7% in Q3 and -24% year to date, reflecting weak consumer confidence, a tightened regulatory environment, and currency headwinds. Scotch whiskies and Martell are both in year-to-date decline in China, though the group notes that premium brands within the market continue to record positive momentum.
Elsewhere the picture is more positive. Canada posted double-digit growth in Q3, driven by RTDs, Canadian Whisky and Jameson. Brazil returned to growth in Q3 following the easing of impacts from the methanol crisis. India grew +11% in Q3 and +6% year to date, with imported spirits including Scotch brands in strong double-digit growth and continuing premiumisation across the market. Europe returned to organic growth of +1% in Q3, with Jameson among the stronger performers across the region.
Within the group’s portfolio, which includes Jameson, Absolut, Beefeater, Havana Club, Malibu, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet, the brand-level picture is mixed. Ballantine’s, Royal Salute and Malibu posted strong growth in Q3 within the Strategic International Brands category, which recorded organic growth of +2% for the quarter. RTDs grew +26% in Q3 and +16% year to date across the global portfolio.
Pernod Ricard has revised its full-year outlook, now forecasting organic net sales to decline by between -3% and -4% for FY26, reflecting the impact of the ongoing conflict in the Middle East. Looking further ahead, the group is projecting organic net sales growth of between +3% and +6% per annum on average from FY27 to FY29.
The results come against the backdrop of confirmation from Pernod Ricard at the end of March that it is in discussions regarding a “potential business combination” with Brown-Forman, the US group behind Jack Daniel’s. The company said at the time that no agreement had been reached.
