Deutsche Bank announced on Thursday that it had resumed coverage of Pernod Ricard with a "hold" recommendation and a target price of €80, after suspending it for several months due to a restriction period on the stock.
In a research note, the financial intermediary explained that it had updated its earnings estimates for the spirits group following the publication of its 2024/2025 annual accounts and its performance for the first quarter of 2025/2026, but also in light of its latest asset disposals and the rise of the euro.
The analyst explains that he continues to anticipate a "difficult" market environment for the current financial year, particularly in the United States and China, but also in India due to the recent increase in excise duties imposed by Maharashtra on imported alcohols
For the 2025/2026 financial year, the professional now expects organic sales growth of -2.7%, compared with -1.2% previously, accompanied by a 6.9% decline in current operating income (EBIT) on an organic basis, a sharper decline than the 5.8% previously anticipated.
Pernod Ricard is the world's No. 1 in the production and marketing of Premium and Prestige spirits and wines. Net sales break down by family of products as follows:
- spirits and champagnes of strategic international brands (61.3%): Absolut (12.3 million cases sold in 2024/25), Jameson (11.2 million), Ballantine's (9.1 million), Chivas Regal (4.8 million), Ricard (4.2 million), Malibu (4.1 million), Beefeater (3.3 million), Havana Club (3.3 million), Martell (1.9 million), The Glenlivet (1.4 million), Perrier-Jouet (0.3 million) and Royal Salute (0.2 million);
- local strategic brands' spirits (18.4%): Seagram's, Kahlua, Olmeca, Seagram's Gin, Ramazzotti, Imperial, and Pastis 51 brands, etc.;
- speciality brand's craft spirits (7.3%): Italicus, Lillet, Pernod, Suze, Augier, Malfy, Jefferson's, Powers and Redbreast brands, etc.;
- strategic wines (4%): Jacob's Creek, Kenwood, Brancott Estate, Campo Viejo, Church Road, George, St Hugo, Stoneleigh, Ysios and Wyndham brands;
- other (9%).
At the end of June 2025, the group has 94 production sites worldwide.
Net sales are distributed geographically as follows: Europe (28.9%), Americas (28.8%) and other (42.3%).
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